James buys a put option on Walmart stock. At the time he buys the option, Walmart stock
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Question:
James buys a put option on Walmart stock. At the time he buys the option, Walmart stock is trading for $144. The option premium is $3 for a put option with a strike price of $140 and expiration in one month. On the expiration date, the stock price is $127. What the profit or loss (in dollars)?
Enter your answer to the nearest cent (i.e. two decimal places).
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