Substantial decrease in share value

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Reference no: EM131814666

DEF Industries has seen a substantial decrease in share value, which you expect to continue for the next several months. You decide to use 10 six month european put options on the company's stock to speculate based on your belief. These put options have an exercise price and put premium of $55 and $3, respectively. Find your profit/loss if the stock trades for $62 when the options expire. 3000 4000 -4000 -300 none of the above.

Reference no: EM131814666

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