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step by step please 6. You own 100 shares of a stock and want to use protective put strategy to hedge your position. Suppose a

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6. You own 100 shares of a stock and want to use protective put strategy to hedge your position. Suppose a put option on the stock with an exercise price of $50 is $3 per share, and you bought one put option. What is your portfolio value if in three month the stock price drops to $45? Assume one option contract gives the right to buy (or sell) 100 shares of underlying stock. Ans: $4700

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