Calculate your percentage return on the put option


Suppose you have $35,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $70 per share. You notice that a put option with a $70 strike is also available with a premium of $3.5. Calculate your percentage return on the put option for the six-month holding period if the stock price declines to $66 per share.

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Finance Basics: Calculate your percentage return on the put option
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