The price of a stock on February 1 is $84.A trader buys 200 put options on the stock with a strike price of $90 when the option price is $10.The options are exercised when the stock price is $85.The trader's net profit or loss is
A) Loss of $1,000
B) Loss of $2,000
C) Gain of $200
D) Gain of $1000
Correct Answer:
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A)
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