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A Put Option If Purchased and Held for 1 Year

Question 9

Multiple Choice

A put option if purchased and held for 1 year. The Exercise price on the underlying asset is $40. If the current price of the asset is $36.45 and the future value of the original option premium is (- $1.62 ) , what is the put profit, if any at the end of the year?


A) $1.62
B) $1.93
C) $3.55
D) $5.17

Correct Answer:

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