Question
Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 84.35 sometime during the next 5 months.
Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 84.35 sometime during the next 5 months. For $ 619.36 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 82 per share. If you bought a 100-share contract for $ 619.36 and Du Pont's stock price actually changed to $ 89.17 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ______? Show your answer to the nearest .01. Do not use $ or , signs in your answer. Use a - sign if you lose money on the contract.
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