Mathematics, 23.10.2019 01:50, zelds63481
Suppose you believe that florio company's stock price is going to decline from its current level of $82.50 sometime during the next 5 months. for $5.10 you could buy a 5-month put option giving you the right to sell 1 share at a price of $85 per share. if you bought this option for $5.10 and florio's stock price actually dropped to $60, what would your pre-tax net profit be? a) $5.10 b) $19.90 c) $20.90 d) $22.50 e) $27.60
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