Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 84.24 sometime during the

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answerhappygod
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Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 84.24 sometime during the

Post by answerhappygod »

Suppose you believe that Du Pont's stock price is going to
decline from its current level of $ 84.24 sometime during the next
5 months. For $ 210.36 (Initial premium) you could buy a 5-month
put option giving you the right to sell 100 shares at a price of $
76 per share. If you bought a 100-share contract for $ 210.36 and
Du Pont's stock price actually changed to $ 84.23 at the end of
five months, your net profit (or loss) after behaving rationally on
the decision to exercise the option would be ______? Show your
answer to the nearest .01. Do not use $ or , signs in your
answer. Use a - sign if you lose money on the contract.
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