Question
Suppose you buy a put option which has an exercise price $40 60%, stock price will go up to 45 40%, stock price will go
Suppose you buy aputoption which has an exercise price $40
60%, stock price will go up to 45
40%, stock price will go down to 35
What's the expected net payoff of the option? (Ignore the option premium)
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Get StartedRecommended Textbook for
International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
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