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The price of a stock is $55. A trader sells 3 put option contracts on the stock with a strike price of $57.50 when the
The price of a stock is $55. A trader sells 3 put option contracts on the stock with a strike price of $57.50 when the option price is $7. The options are exercised when the stock price is $49.50. What is the trader's total net profit or loss? answer is Gain of $200. Please show work.
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