Question: please answer fully with tables A put option in finance atoes you to seil a share of stock at a given price in the future.

please answer fully with tables
please answer fully with tables A put option in finance atoes you

A put option in finance atoes you to seil a share of stock at a given price in the future. There are different types of put eptions. A European put option allons you to sell a share of stack at a given price, called the exerdse price, of a particular potnt in time after the purchase of the option. For example, suppose you purchase a six-month furopean put option for a shere of stock with an exercise price of 127 . If six months latel, the stock price per share is s27 or mure, the option has no value. If in ikx months the stock price is lower than $27 per thart, then you can purchase the stock and immediately sell it at the higher everche price of s27. If the price per share in six months in 123 , so, you can purchase a share of the stock for $23.50 and then use the put option to imunediatily sell the thare for $27. Your proft would be the difference, 327 - $23.5013.50 per share, loss the cost of the option. If you paid $1.00 per pot optian, then your pront would be $1.5011.00=$2.50 per shure. The poht of purchasing a European option is to Imit the risk of a decrease in the pecshare price of the stody, Suppose you purchased 370 shares of the stock at s33 par share and 130 six-month furopean put ooblons with an exercise price of 927 . tach put option costs 31 . (a) Using dotn tables, construct o modet that shows the value of the portfolio wath optons and without options for a share jrice in six months between 315 and 535 per ahare in increments of s1.00. (b) Discues the value of the portfole with and without the Eiropean put options: A put option in finance atoes you to seil a share of stock at a given price in the future. There are different types of put eptions. A European put option allons you to sell a share of stack at a given price, called the exerdse price, of a particular potnt in time after the purchase of the option. For example, suppose you purchase a six-month furopean put option for a shere of stock with an exercise price of 127 . If six months latel, the stock price per share is s27 or mure, the option has no value. If in ikx months the stock price is lower than $27 per thart, then you can purchase the stock and immediately sell it at the higher everche price of s27. If the price per share in six months in 123 , so, you can purchase a share of the stock for $23.50 and then use the put option to imunediatily sell the thare for $27. Your proft would be the difference, 327 - $23.5013.50 per share, loss the cost of the option. If you paid $1.00 per pot optian, then your pront would be $1.5011.00=$2.50 per shure. The poht of purchasing a European option is to Imit the risk of a decrease in the pecshare price of the stody, Suppose you purchased 370 shares of the stock at s33 par share and 130 six-month furopean put ooblons with an exercise price of 927 . tach put option costs 31 . (a) Using dotn tables, construct o modet that shows the value of the portfolio wath optons and without options for a share jrice in six months between 315 and 535 per ahare in increments of s1.00. (b) Discues the value of the portfole with and without the Eiropean put options

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