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Suppose you buy a stock (which pays no dividends) for $61 and buy a $65-strike put for $9.01. Assuming the effective annual interest rate is

Suppose you buy a stock (which pays no dividends) for $61 and buy a $65-strike put for $9.01. Assuming the effective annual interest rate is 10%, what is the profit on your position if the stock is worth $84.79 when the option expires?
Selected Answer: image text in transcribede.

$12.01
Answers: a.

$0.00
b.

$14.78
c.

$6.88
image text in transcribedd.

$7.78
e.

$12.01

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