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You are buying 5 contracts of a put option with an exercise (strike price) of $100. You pay $10 premium per share. The stock price
You are buying 5 contracts of a put option with an exercise (strike price) of $100. You pay $10 premium per share. The stock price reaches at $130 when the option is about to expire in three months. The rate of return for three months in this trade is:
a. $20
b. $30
c. -400%
d. -100%
e. None of the above. My answer is ..............
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