Question: Currently a put contract with an exercise price of 5

Currently a put contract with an exercise price of $5 on a share of Mily be Aerospace’s common stock is selling for (that is, its premium is) $1. What would the profit or loss graph (similar to figure) look like for this option? In drawing this graph, assume that the option is being evaluated on its expiration date. What are the maximum profits, maximum losses, and the break-even point?


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  • CreatedOctober 31, 2014
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