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Determining the put profit

A put option if purchased and held for 1 year. The Exercise price on the underlying asset is $40. If the current price of the asset is $36.45 and the future value of the original option premium is (- $1.62 ), what is the put profit, if any at the end of the year?

A. $1.62
B. $5.17
C. $1.93
D. $3.55

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Finance Basics: Determining the put profit

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the put profit

Reference No:- TGS0558936

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Which investment has the least amount risk

Q : Estimate the stock price

Q : Find value of bond with charateristic face value-coupon rate

Q : Calculate the price of the companies stock

Q : Determining the put profit

Q : Which option to take to receive a given lump sum

Q : Expiration for the long put

Q : Determine intrinsic mva of a company

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the put profit

Reference No:- TGS0558936

Recent Questions Asked Finance Basics

Q : Which investment has the least amount risk

Q : Estimate the stock price

Q : Find value of bond with charateristic face value-coupon rate

Q : Calculate the price of the companies stock

Q : Determining the put profit

Q : Which option to take to receive a given lump sum

Q : Expiration for the long put

Q : Determine intrinsic mva of a company

Q : Determine the expected level of inflation

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