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SHOW YOUR WORK Suppose a put option with strike of 55 costs $5.80 . If at expiry it returns a payoff such that the rate

SHOW YOUR WORK Suppose a put option with strike of 55 costs $5.80 . If at expiry it returns a payoff such that the rate of return on the option investment is 120%, what is the underlying stock price at expiry?

a. $51.11

b. $46.46

c. $42.24

d. $38.40

e. $56.22

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