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Questions 2 parts: 1. Apple is currently trading at $122 per share. You buy a put option on Apple with a strike price of $110.
Questions 2 parts:
1.
Apple is currently trading at $122 per share. You buy a put option on Apple with a strike price of $110. The option will expire at the end of this week.
If the stock is trading at $105 at the end of this week, what will be the payoff of the put?
2.
Apple is currently trading at $122 per share. You buy a put option on Apple with a strike price of $110. The option will expire at the end of this week.
If the stock is trading at $125 at the end of this week, what will be the payoff of the put?
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