Suppose you have $36,000 to invest
Question
Suppose you have $36,000 to invest. You’re considering Miller-Moore Equine
Enterprises (MMEE), which is currently selling for $80 per share. You notice that a put option with a $80 strike is available with a premium of $3.00. Calculate your percentage return on the put option for the six-month holding period if the stock price declines to $76 per share.