Problem:
Suppose you have $35,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $70 per share. You notice that a put option with a $70 strike is also available with a premium of $3.5.
Required:
Question: Calculate your percentage return on the put option for the six-month holding period if the stock price declines to $66 per share.
Note: Please show guided help with steps and answer.