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Problem 10: Short Put for GE at the strike price of $10, premium is $0.40 per share, good until 3/15/19. Will this option be exercised

Problem 10: Short Put for GE at the strike price of $10, premium is $0.40 per share, good until 3/15/19.

  1. Will this option be exercised when the stock price is $9.65? and more important, how do you know?

  1. Calculate profit/loss per share at option expiration when the stock price is $9.65.

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