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There is a stock with current price at about 5 and January 2009 10 put at 7.2. Let\'s see I write 100 contract and get 72K cash into my cash and money market account. The question is
1). Will the 72K generate interest for me?
2). As I shorted 72K value of put, will I need pay for the interest?
I really like the stock but don\'t want to buy it directly. The risk/return is good to me but I am not sure about the interest and fees as this is deep in the put to write? Thanks in advance. |
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