Question
Suppose you believe that GM's stock price is going to decline from its current level of $ 84.59 sometime during the next 2 months. For
Suppose you believe that GM's stock price is going to decline from its current level of $ 84.59 sometime during the next 2 months. For $ 1,529.89 (Initial premium) you could buy a 2-month put option giving you the right to sell 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 1,529.89 and GM's stock price actually changed to $ 72.04 , your net profit (or loss) after exercising 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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