Calculate your percentage return on the put option

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Reference no: EM131450961

Suppose you have $60,000 to invest. You're considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $30 per share. You notice that a put option with a $30 strike is available with a premium of $6. Calculate your percentage return on the put option for the six-month holding period if the stock price declines to $20 per share. (Negative value should be indicated by a minus sign. Leave no cells blank -be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your 6-month return as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM131450961

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