Suppose you sell (write) a European put option on XYZ with strike $50 and expiration T .
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Question:
Suppose you sell (write) a European put option on XYZ with strike $50 and expiration T . Draw the payoff of your position as a function of ST, the price of XYZ, in a payoff diagram. In the same diagram, draw the payoff of selling 2 put options. Now draw the payoff of selling ten put options.
Related Book For
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
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