Donia purchased 24 shares of SAMBA stock at $42.05 per share to hedge herself; she purchases...

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Donia purchased 24 shares of SAMBA stock at $42.05 per share to hedge herself; she purchases a put option contract Exercise price $30 and the premium is $3 per-contract. After 20 days, the price of the stock declines to $35. If the option is American, compute profit (loss) for the writer Round your answer to 2 decimal places. Answer formula (35-x+0.03)*n b=42.05 x = 30 n = 24 Donia purchased 24 shares of SAMBA stock at $42.05 per share to hedge herself; she purchases a put option contract Exercise price $30 and the premium is $3 per-contract. After 20 days, the price of the stock declines to $35. If the option is American, compute profit (loss) for the writer Round your answer to 2 decimal places. Answer formula (35-x+0.03)*n b=42.05 x = 30 n = 24

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ANSWER In this scenario Donia is the buyer of the put option and the writer is ... View the full answer