Question: Problem 2. 18 pts]. You own a put option on Saputo Inc (SAP.TO) stock with a strike price of S38. When you bought the put,
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Problem 2. 18 pts]. You own a put option on Saputo Inc (SAP.TO) stock with a strike price of S38. When you bought the put, its cost to you was $4.15. The option will expire in exactly six months' time. (Show your calculations) a. If the stock is trading at $48 in six months, what will be the payoff of the put? What will be the profit of the put? If the stock is trading at $28 in six months, what will be the payoff of the put? What will be the profit of the put
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