In march a us investor instructs a broker to sell one july, Financial Management

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In march a us investor instructs a broker to sell one july

In March, a US investor instructs a broker to sell one July put option contract on a stock. The stock price is $42 and the strike price is $40. The option price is $3. Explain what the investor has agreed to. Under what circumstances will the trade prove to be profitable? What are the risks?

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Financial Management: In march a us investor instructs a broker to sell one july

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Financial Management: In march a us investor instructs a broker to sell one july

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