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Business, 07.04.2020 21:08 marjorieheckaman

Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.30 sometime during the next 5 months. For $ 412.33 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 412.33 and Du Pont's stock price actually changed to $ 82.09 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ?

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