alleryStart learning →A stock is bought at Rs 100 along with a put of strike Rs 95 costing Rs 2. What is the maximum loss per share?
ARs 5
BRs 7
CRs 2
DRs 95
Answer & Solution
Correct answer: B. Rs 7
The put locks in a sale at 95, so loss is the 5 fall in price plus the Rs 2 premium, which is Rs 7.
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