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only 4 question only have 30mins  get it done in 30mins
If the stock price becomes $50 at expiration, which option will yield the highest rate of
return (=profit / cost)?
put option with $70 exercise price,
cost = $4
put option with $80 exercise price,
cost = $8
put option with $90 exercise price,
cost = $15
underlying stock, cost = $80 It is April and a trader buys 100 September put options with a strike price of $21. The stock price is $16.85 and the option price is $4.61.
At the expiration, the stock price becomes $18.59. Calculate the option profit to the trader. If the stock price becomes $80 at expiration, which security will yield the highest rate of
return (=profit / cost)?
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