Suppose you write 30 of the February 100 put contracts. What is your net gain or loss

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Suppose you write 30 of the February 100 put contracts. What is your net gain or loss if Hendreeks is selling for $90 at expiration? For $110? What is the break-even price, that is, the terminal stock price that results in a zero profit?

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Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Question Posted: Sep 19, 2012 04:49 AM

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Suppose you write 30 of the February 100 put contracts. What is your net gain or loss

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Stock price 90 Initial revenue 30100240 7200 Terminal value 3010090 100 30000 Net gai...View the full answer

Fundamentals of Investments Valuation and Management

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