3. You have a protective put strategy on XYZ. The exercise price = 30. The cost...

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3. You have a protective put strategy on XYZ. The exercise price = 30. The cost of the option = $2. If the stock price on expiry of the option =27, what is the value of your portfolio (stock+ option) at expiry? a. Protective put has 2 securities in the portfolio. Write down the value for each security separately. b. Sum up the 2 values. 3. You have a protective put strategy on XYZ. The exercise price = 30. The cost of the option = $2. If the stock price on expiry of the option =27, what is the value of your portfolio (stock+ option) at expiry? a. Protective put has 2 securities in the portfolio. Write down the value for each security separately. b. Sum up the 2 values.

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a In a protective put strategy the portfolio consists of two securities the stock and the put option ... View the full answer