Question: Can someone show with equations how to do this? TABLE 3.1 Payoff and profit at expiration from purchasing the S&R index and a 1000-strike put

Can someone show with equations how to do this?

Can someone show with equations how to do this? TABLE 3.1 Payoff

TABLE 3.1 Payoff and profit at expiration from purchasing the S&R index and a 1000-strike put option. Payoff is the sum of the first two columns. Cost plus interest for the position is ($1000 + $74.201) 1.02 = $1095.68. Profit is payoff less $1095.68. Payoff at Expiration S&R Index S&R Put Payoff -(Cost + Interest) $900 $100 $1000 -$1095.68 950 50 1000 -1095.68 1000 0 1000 -1095.68 1050 0 1050 -1095.68 1100 0 1100 -1095.68 1150 0 1150 -1095.68 1200 0 1200 -1095.68 Profit - $95.68 -95.68 -95.68 -45.68 4.32 54.32 104.32

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!