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A trader invests in Facebook by buying 1000 shares in June for $27 per share. She also buys 1000 put options for $5 each as insurance in case the stock drops sharply. The put options have a strike price of $27 and a maturity date of December. What is the gain or loss (meaning profit) if the spot price on December is:
A. $20 B. $27 C. $32 D. $37
1. is concerned with the maximization of a firms earnings after taxes.a shareholder wealth maximizationb profit
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