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PUT OPTION 1. If you purchase 30 6-month puts on Bama Corp at $1.25/option with an exercise price of $40.00, what would you do and

PUT OPTION

1. If you purchase 30 6-month puts on Bama Corp at $1.25/option with an exercise price of $40.00, what would you do and what is your net gain or loss if Bama is trading at $47.50 per share at expiration?

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