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

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Suppose you write 30 of the July 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: 978-0078115660

7th edition

Authors: Bradford Jordan, Thomas Miller

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Question Posted: Nov 18, 2016 09:30 AM

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

Question:

Calls Strike Price Last Expiration Vol. Close Hendreeks 103 103 103 103 2.40 5.20 8.40 10.68 4.30 72 Feb Mar 100 100 100 100 0 6.60 10.10 16

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Given Data Strike Calls Puts Close Price Exp Vol Last Vol Last 103 100 Feb 72 520 ...View the full answer

Fundamentals of Investments Valuation and Management

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