The abc company expects stock prices to decrease the, Financial Management

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The abc company expects stock prices to decrease the

The ABC Company expects stock prices to decrease. The current stock price is $96. The company purchases a put option, with exercise price of $93 and a premium of $3 per share. Assume instead that the stock price was $88 just before the expiration date. Should the investor exercise the put option or not? What will the total payoff per share be?

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Financial Management: The abc company expects stock prices to decrease the

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