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Oliver buys 100 European put contracts on stock XYZ with an expiration time of 6 months from today. The strike price for these put
Oliver buys 100 European put contracts on stock XYZ with an expiration time of 6 months from today. The strike price for these put options is 40, and each contract costs 9. The dividend rate for stock XYZ is 8 = 0.05, and the risk-free rate is r = 0.03, both given as annual, continuous rates. Given the following stock price data, what is Oliver's profit after 6 months? Time elapsed (months) 0 3 Price (dollars) 69 12 30 30.5 31 32.5 32
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