Share and stock is purchased and the option exercised

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Reference no: EM131079319

A put option is purchased for a premium of $200 with an exercise price of $38 per share and a current market price on the stock of $41 per share. What would be the return if the market price declines to $35 per share and the stock is purchased and the option exercised? Ignore taxes and brokerage commissions. Round to the nearest percentage if necessary. Please show steps.

Reference no: EM131079319

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