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conrad136 conrad136
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A year ago
Suppose you believe that Delva Corporation’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 $85 per share. If you bought this option for $510.25 and Delva’s stock price actually drops to $60, what would be your pre-tax net profit?


▸

–$510.25



▸

$1,989.75



▸

$2,089.24



▸

$2,193.70

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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firebug210firebug210
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A year ago
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conrad136 Author
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A year ago
Brilliant ツ
bahajo
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Thanks
Morgan-C
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2 hours ago
This site is awesome
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