You bought a stock for $40. You have decided to buy a protective put with a strike
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Question:
You bought a stock for $40. You have decided to buy a protective put with a strike price of $32. The premium on the put is $5.
What is the profit of your portfolio, if the price of the stock at the expiration of the option is $10?
What is the profit of your portfolio, if the price of the stock at the expiration of the option is $30?
What is the profit of your portfolio, if the price of the stock at the expiration of the option is $50?
What is the profit of your portfolio, if the price of the stock at the expiration of the option is $70?
Related Book For
Accounting
ISBN: 978-0132690089
9th Canadian Edition volume 2
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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