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)Suppose you believe that Ds stock price is going to decline from its current level sometime during the next 6 months. Suppose you buy a
)Suppose you believe that Ds stock price is going to decline from its current level sometime during the next 6 months. Suppose you buy a 6-month put option on Ds stock for $400. This put option gives you the right to sell 100 shares of Ds stock at an exercise price of $51 per share. What is the most you could lose in this purchase, at what price for Ds stock would you break even by exercising this option and how much would you make if Ds stock fell to $44 per share?
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