Computing the put options worth, Accounting Basics

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Computing the put options worth

Problem:

Suppose you purchase five put contracts on Company ABC. The strike price is $54, and the premium is $3.

Required:

Question: If, at expiration, the stock is selling for $47 per share, what are your put options worth? What is your net profit?

Note: Show supporting computations in good form.

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Accounting Basics: Computing the put options worth

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Accounting Basics: Computing the put options worth

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