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Purchase of the options contract

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Suppose you are a conservative investor and own 100 shares of Apple stock. The price of a share is $200. You purchase a covered put for 100 shares at a striking price of $190, and the cost of the option contract is $200 ($2 per share). Compared to before the purchase of the options contract, what happens to your financial net worth if the price of the stock declines to $185?

Reference no: EM131152458

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