Brokerage commissions and taxes

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Stock purchased by an investor for $20 per share has now risen in price to $44 per share. To cover potential losses, the investor purchases a put option for a premium of $300 with an exercise price of $42 per share. The stock falls to $28 per share and the investor exercises the option and sells the shares at $42 per share. Ignoring brokerage commissions and taxes, what would be the investor's return from the stock? Please show steps.

Reference no: EM131079291

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