Question: Assignment 2 1. A customer buys a 50-strike put on an index when the market price of the index is also 50. The premium

Assignment 2 1. A customer buys a 50-strike put on an index

Assignment 2 1. A customer buys a 50-strike put on an index when the market price of the index is also 50. The premium for the put is 5. Assume that the option contract is for an underlying 100 units of the index. Calculate the customer's profit if the index declines to 45 at expiration?

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