Suppose an investor buys a put for $2.50 a share which matures in 3 months with a strike price of $50. What is the rate of return if the stock price falls to $46 on the expiration date?
A) 40%
B) 50%
C) 55%
D) 60%

Question

Suppose an investor buys a put for $2.50 a share which matures in 3 months with a strike price of $50.  What is the rate of return if the stock price falls to $46 on the expiration date?
A) 40%
B) 50%
C) 55%
D) 60%

Quizplus · Accepted Answer

The Answer of Suppose an investor buys a put for $2.50 a share which matures in 3 months with a strike price of $50.  What is the rate of return if the stock price falls to $46 on the expiration date?
A) 40%
B) 50%
C) 55%
D) 60%

Suppose an Investor Buys a Put for $2