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Suppose that you buy a put contract with a strike price of $50 and an expiration date in three months. The option premium is $4
Suppose that you buy a put contract with a strike price of $50 and an expiration date in three months. The option premium is $4 per option and the contract is on 100 shares. Calculate the profitability (loss) at the following market prices (use the table to answer the question).
Market price | Profit or Loss |
30 | |
34 | |
38 | |
42 | |
46 | |
50 | |
54 | |
58 | |
62 | |
66 |
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