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You have purchased a put option on Pfizer common stock. The option has an exercise...

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Finance

You have purchased a put option on Pfizer common stock. The option has an exercise price of $49 and Pfizers stock currently trades at $51. The option premium is $0.40 per contract.

a. What is your net profit on the option if Pfizers stock price does not change over the life of the option? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) Net profit $ per share

b. What is your net profit on the option if Pfizers stock price falls to $46 and you exercise the option? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) Net profit $ per share

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