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Suppose QDS stock is currently selling for $100 and the investor is worried that the stock will go down, no matter who wins the coming
Suppose QDS stock is currently selling for $100 and the investor is worried that the stock will go down, no matter who wins the coming election. The investor won't mind losing $25 or less, but doesnt want to lose more than that. The investor also wants to reap any gains if the price goes up. So, the investor comes to you for advice. You decide to buy a put with a strike price of $75 and you spend $3 to buy the put.
If the stock declines to $20, what is the total payout for your portfolio (the stock payout plus the put payout)?
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