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Problem 1: Leisure corporation stock is selling for $32.375 per share. You are going to buy a put option with an $35 exercise price for $4.75 premium. Prior to maturity, the stock price rises to $38.875. What is your dollar gain or loss?
A) $600 lossB) $25 lossC) $475 lossD) $387.50 lossE) She has a gain
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