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What is the rate of return on investment

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Assume you purchased the right to sell 3,800 shares of Target stock in March 2019 at a strike price of $55 per share. Suppose Target stock sells for $51 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $60 per share? Assume your holding period for this investment is exactly three months.

Reference no: EM133120566

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