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Suppose you buy a stock (which pays no dividends) for $85 and buy a $80-strike put for $6.98. Assuming the effective annual interest rate is
Suppose you buy a stock (which pays no dividends) for $85 and buy a $80-strike put for $6.98. Assuming the effective annual interest rate is 6%, what is the profit on your position if the stock is worth $78.20 when the option expires?
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