What would your pre-tax net profit be

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Reference no: EM13877834

Suppose you believe that Alpha Copration's stock price is going to decline from its current level fo $82.50 sometime during th next 5 months. ou could buy a 5 month, a contact of put option at the strike price of $85 per share. If you bout this option fot $510.25 and Alpha's price actually dropped to $60, what would your pre-tax net profit be? show the work.

Reference no: EM13877834

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What would your pre-tax net profit be : Suppose you believe that Alpha Copration's stock price is going to decline from its current level fo $82.50 sometime during th next 5 months. ou could buy a 5 month, a contact of put option at the strike price of $85 per share. If you bout this optio..

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