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Problem:

It is April and a trader buys 100 September put options with a strike price of $20. The stock price is $17.06 and the option price is $5.93. At the expiration, the stock price becomes $18.58.

Required:

Question: Calculate the option profit to the trader.

Note: Explain all steps comprehensively.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91166080

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