If you brought this option for 42525 and alphas stock price


Suppose you believe Alpha Corporation's stock price is going to decline from its current level of $83.50 sometime during the next 3 months. You could buy a 3- month, one contract of put option at the strike price of $85 per share. IF you brought this option for $425.25 and Alphas stock price actually dropped to $61, what would your pre-tax profit be? PLEASE SHOW WORK.

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Financial Management: If you brought this option for 42525 and alphas stock price
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