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shepherd shepherd
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8 years ago
Stock purchased by an investor for $20 per share has now risen in price to $44 per share. To cover potential losses, the investor purchases a put option for a premium of $300 with an exercise price of $42 per share. The stock falls to $28 per share and the investor exercises the option and sells the shares at $42 per share. Ignoring brokerage commissions and taxes, what would be the investor's return from the stock?
A) 70%      B) 120%      C) 110%      D) 95%
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Personal Finance

Personal Finance


Edition: 5th
Author:
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tityltityl
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8 years ago
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shepherd Author
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#2
8 years ago
Exactly what I wanted!
nobegoon
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#3
8 years ago
Happy to help Slight SmileSlight Smile
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