Consider the following stock price and option quotes for the stock of Gone-a-Golf’n, Inc., a firm specializing in high-end golf vacations for the 1%.

Stock X Call Call Put Put

Price Exp Strike Bid Ask Bid Ask

$10 Sep $10 $2 $3 $2 $3

$10 Sep $8 $5 $6 $1 $2

Stock Price	Exp	X Strike	Call Bid	Call Ask	Put Bid	Put Ask
$10	Sep	$10	$2	$3	$2	$3
$10	Sep	$8	$5	$6	$1	$2

Assume you own GG stock today at its current price of $10. Rumors of an accounting scandal are flying, and you want to protect your position, but not sell your stock.

Plot and label the provided payoff diagram that reflects the simple option strategy that will allow you to protect the value of your GG shares while also profiting from the upside

Answer rating: 100% (QA)

Answer Solution Simple option strategy Would be to buy a put o... View the full answer