You sold a 7-month put option 100-shares contract with an exercise price of $79 per share. This means that you have the obligation to sell 100 shares at a price of $79 per share if the buyer of the put exercises the put at expiration time. If you sold this 100-share contract for $540.00 and the stock price actually changed to $74 at expiration of the put option, your net profit (or loss) would be ______?

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To answer your question I will use the profit formula for a put option Profit Strike ... View the full answer