Suppose you believe that du pontrsquos stock price is going, Ask an Expert

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Suppose you believe that Du Pont’s stock price is going to decline from its current level of $82.50 sometime during the next 5 months. For $510.25 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $83.00 per share. If you bought a 100-share contract for $510.25 and Du Pont’s stock price actually dropped to $63.00, what would be your net profit (after transactions costs but before taxes)?

a. $1,950.00 b. $1,439.75 c. $1,489.75 d. $2,435.00

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91592235

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