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An Investor Has Purchased 5 Put Option Contracts at a Price

question 7

Multiple Choice

An investor has purchased 5 put option contracts at a price of $3.86. The options have a strike price of $80. If the stock price at expiration is $86.27, what is the profit from this transaction?

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Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or standard.

Traditional Media

Traditional media encompasses the long-established mediums of communication such as television, radio, newspapers, and magazines, in contrast to digital platforms.

Niche Journalism

Journalism focused on a specific segment of the market or audience, catering to particular interests rather than general news.

Environmental Issues

Concerns related to the damage of the natural environment due to human activities and the measures needed to address such impacts.

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