What was the net return on the option position

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Reference no: EM133332118

Question: 3 months ago, one stock of Company X was worth $78 in the market. At that moment, an investor thought that the stock could go down, and bought European put options over Company X's stock, with a strike of $68 and maturity of 3 months, for $3.12.

If the investor purchased 25 European puts, what was the net return on the option position if the stock price was $56.51 at the option's maturity?

Reference no: EM133332118

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