You buy one put option on the stock and pay 3 for it one
A stock is currently trading at $50, and you - a speculator - expect it to decrease to $25 in a year. You buy one put option on the stock and pay $3 for it. One year later, the price is $75. What is your total profit?
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a stock is currently trading at 50 and you - a speculator - expect it to decrease to 25 in a year you buy one put
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