Suppose you believe that alpha coprations stock price is


Suppose you believe that Alpha Copration's stock price is going to decline from its current level fo $82.50 sometime during th next 5 months. ou could buy a 5 month, a contact of put option at the strike price of $85 per share. If you bout this option fot $510.25 and Alpha's price actually dropped to $60, what would your pre-tax net profit be? show the work.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Suppose you believe that alpha coprations stock price is
Reference No:- TGS01163223

Expected delivery within 24 Hours