A trader invests in Facebook by buying 1000 shares in June for $27 per share. She also
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A trader invests in Facebook by buying 1000 shares in June for $27 per share. She also buys 1000 put options for $5 each as insurance in case the stock drops sharply. The
put options have a strike price of $27 and a maturity date of December. What is the gain or loss if the spot price on December is: a) $20, b) $27, c) $32 and d) $37? ($5,000 loss, $5,000 loss, $0, $5,000 gain)
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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