Seven months ago, Mrs. Shaphiro took a long position in a forward contract on the stock of AIG at the forward price of $88. Five months ago, Mrs. Shapiro bought a put option on the stock of AIG with a strike price of $91. Today, the contract matures, the option expires, and the spot price of AIG is $94. What is the payoff of Mrs. Shapiro's strategy? 

 

Answer rating: 100% (QA)

To determine the payoff of Mrs Shapiros strategy lets analyze each component of her position 1 Long ... View the full answer