If You Buy the March Put and Don't Exercise Before

question 51

Multiple Choice

If you buy the March put and don't exercise before contract maturity, you will make a profit if the stock price at maturity _______________________ from today's price.

• A) increases by more than 9.65%
• B) increases by more than 4.57%
• C) decreases by more than 3.94%
• D) decreases by more than 11.99%
• E) does not decrease by more than 5.64% [(50 - 6.55)/45.23] - 1

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