Question: ) Assume you purchased five put option contracts with 90 days until the expiration date on Stock CC with a strike price of $90 and

  1. ) Assume you purchased five put option contracts with 90 days until the expiration date on Stock CC with a strike price of $90 and a premium of $5.30. The stock is currently trading at $89.40 and assume at the end of 90 days, Stock CC is trading at $82.40:
    1. What are your put options worth at expiration?

  1. What is your net profit on the put option contracts?

  1. Using a HPR, what is the rate of return over the 3 month period?

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