Question: I need the steps to get to the answer A investor buys a put option to sell 100 shares. Strike price=$70 Current share price=$65. Suppose,

I need the steps to get to the answer

A investor buys a put option to sell 100 shares.

Strike price=$70

Current share price=$65. Suppose, the share price is $55 at the expiration.

Price of put option to sell one share=$7

The net gain (loss) equals

Correct Answer: gain $800

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