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Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium (option price) is $10.

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Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium (option price) is $10. When the option expires, the value of the underlying asset is $120. What is your pay-off and profit / loss? Points: 4

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