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Suppose you own 300 shares of a stock which is currently worth $18 a share. You just paid an option premium of $.65 to buy
Suppose you own 300 shares of a stock which is currently worth $18 a share. You just paid an option premium of $.65 to buy one put contract on this stock with a strike price of $15. What's the maximum loss per share you are avoiding by purchasing the option contract?
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
