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A non-dividend paying stock X is trading at $110

Finance Dec 17, 2021

A non-dividend paying stock X is trading at $110. A put option for 3 years maturity on the non-dividend paying stock X at a strike price of $85 and $23.An investor decides to enter in a protective put position for this stock for 3 years. Calculate undiscounted profit or loss of the investor at the end of the maturity if the terminal spot price of stock X turns out to be $85.

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