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Business & Finance Assignment | Custom Assignment Help

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December 11th, 2019

An investor believes that XYZ stock will decline in the upcoming 6 months and as such buys one put option at a strike price of $40. The stock is currently trading at $42 a share. The investor pays $3 a share for the premium. What is the investor’s maximum possible gain and maximum loss? What is the maximum gain and loss for the writer of the put?

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