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Suppose James writes a put option on Facebook stock with the exercise price K=$140 at price of P0=$12 per share today and it expires on
Suppose James writes a put option on Facebook stock with the exercise price K=$140 at price of P0=$12 per share today and it expires on October this year. If the stock price turns out $ST=$150 on the expiration date, what would be the payoff per share to James on the expiration day? Assume there was no dividend or early exercise of the option.
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