Calculate your percentage return on put option for six month

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Suppose you have $50,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $20 per share. You notice that a put option with a $20 strike is available with a premium of $2.5. Calculate your percentage return on the put option for the six-month holding period if the stock price declines to $16 per share.

Reference no: EM13721853

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Calculate your percentage return on put option for six month : Suppose you have $50,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $20 per share. You notice that a put option with a $20 strike is available with a premium of $2.5. Calculate your percentage..

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