Question: You forecast that Royal Caribbean (RCL) will decrease below $25 per share by the end of 2020.You have $5,000 to invest.Show a purchased put option

  1. You forecast that Royal Caribbean (RCL) will decrease below $25 per share by the end of 2020.You have $5,000 to invest.Show a purchased put option today.Value your option at some point in time before your chosen maturity. Value your option at some point in time before your chosen maturity (you decide the date, use the BSOP model). Show your forecasted holding per return and forecasted annualized return if this call price premium comes true.You will have to make assumptions for the BSOP model - list them.Show your forecasted holding per return and forecasted annualized return.

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