An investor purchase 500 shares of ford stock for 15 per, Ask an Expert

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An investor purchase 500 shares of Ford stock for $15 per share and simultaneously purchases 5 put options with an exercise price of $14. The put options currently trade at a premium of $0.29. Six months later, the investor exits both the stock and option positions at option expiration, at which time Ford stock is t is currently trading for $14.25 per share. What is the investor’s total net gain or loss on the trade?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92419939

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