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Suppose that you find that YBMs October 100 put has an ask price of $4.10 and a bid price of $4.00. If you want to
Suppose that you find that YBMs October 100 put has an ask price of $4.10 and a bid price of $4.00. If you want to buy these put options to protect your holding of 400 YBM shares from declining, what is your total cost including commission? Assume that the broker charges a commission equal to a flat fee of $15 plus $2 per contract.
a. | $1,623 |
b. | $1,647 |
c. | $1,655 |
d. | $1,663 |
e. | None of these answers are correct. |
ANS: D
how?
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