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    Exam 21: Option Applications and Corporate Finance
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    Suppose That a Stock Sells at a Price of $60
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Suppose That a Stock Sells at a Price of $60

Question 71

Question 71

Multiple Choice

Suppose that a stock sells at a price of $60 on the expiration date. Compute the payoff to the seller of a put option if the option strike price is $80.


A) -$20
B) -$10
C) 0
D) $40

Correct Answer:

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