Question

You buy a put option to sell stock at $35. The price of the stock is $34 when you bought it, and the price paid for the put is $2. What is the percentage return from purchasing the put if at the expiration of the put the price of the stock is $31?

Answer 1

Answer for below mentioned question "

You buy a put option to sell stock at $35. The price of the stock is $34 when you bought it, and the price paid for the put is $2. What is the percentage return from purchasing the put if at the expiration of the put the price of the stock is $31?"

is explained in the attachment.

Step-by-step explanation: