Solved

If an Investor Buys a Dupont Put for $2

Question 48

Multiple Choice

If an investor buys a Dupont put for $2.50 maturing in three months with a strike price of $50, what is the rate of return if Dupont is currently trading at $51.75 but falls to $46 at expiration?


A) 30%
B) 40%
C) 50%
D) 60%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents