What will be your profit or loss if the stock price falls

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Question: Assume that you buy 100 share of a Rockwell Corp. Stock at $ 69. You also buy one smith Corp. put contract (100 securities) with June maturity, $ 65 strike price, and a current price of $ 1.25 per option what will be your profit or loss if the stock price falls to $ 60 by the exercise date in June?

Reference no: EM131935783

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