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You purchase one IBM July 100 put contract for a premium of $8. You hold the option until the expiration date when IBM stock
You purchase one IBM July 100 put contract for a premium of $8. You hold the option until the expiration date when IBM stock sells for $90 per share. You will realize a on the total investment. (remember a stock put or call usually cover 100 shares)
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
