Question: How to do with excel formulas Consider a protective put, which is a combination of a long stock and a long put on the stock.
How to do with excel formulas



Consider a protective put, which is a combination of a long stock and a long put on the stock. Here are the put option's parameters. \begin{tabular}{|c|c|l} \hline K,X & 6.00 & The put's strike price \\ \hline T & 0.5 & time to expiration, in years. \\ \hline \end{tabular} The stock has the following properties. The risk-free rate equals 6%. rf6% What is the premium of the put? What is the stock's expiration date payoff? What is the put's expiration date payoff? For the portfolio of stock plus protective put, what is the portfolio's expiration date payoff? What is the profit of the stock? What is the profit of the put? What is the profit of the portfolio: stock plus long put? Perform a Data Table on the payoffs of the stock, put, and protective put portfolio. The column input variable is the stock's expiration date price, ST. Use expiration date stock prices of {0,2,4,6,8,10,12}. Plot all three functions (ST,PT, and ST+PT), of the above Data Table. Place the upper left corner of the plot in the yellow cell below (D61). Perform a Data Table on TODAY'S VALUES of the stock, put, and protective put portfolio. The column input variable is the stock's CURRENT price today, S0. Use CURRENT date stock prices of {0.01,2,4,6,8,10,12}. Consider a protective put, which is a combination of a long stock and a long put on the stock. Here are the put option's parameters. \begin{tabular}{|c|c|l} \hline K,X & 6.00 & The put's strike price \\ \hline T & 0.5 & time to expiration, in years. \\ \hline \end{tabular} The stock has the following properties. The risk-free rate equals 6%. rf6% What is the premium of the put? What is the stock's expiration date payoff? What is the put's expiration date payoff? For the portfolio of stock plus protective put, what is the portfolio's expiration date payoff? What is the profit of the stock? What is the profit of the put? What is the profit of the portfolio: stock plus long put? Perform a Data Table on the payoffs of the stock, put, and protective put portfolio. The column input variable is the stock's expiration date price, ST. Use expiration date stock prices of {0,2,4,6,8,10,12}. Plot all three functions (ST,PT, and ST+PT), of the above Data Table. Place the upper left corner of the plot in the yellow cell below (D61). Perform a Data Table on TODAY'S VALUES of the stock, put, and protective put portfolio. The column input variable is the stock's CURRENT price today, S0. Use CURRENT date stock prices of {0.01,2,4,6,8,10,12}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
