4. You own a put option on Ford stock with a strike price of $10. The option...
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4. You own a put option on Ford stock with a strike price of $10. The option will expire in exactly six months.
a. If the stock is trading at $8 in six months, what will be the payoff of the put?
b. If the stock is trading at $23 in six months, what will be the payoff of the put?
c. Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292018409
3rd Global Edition
Authors: Berk, Peter DeMarzo, Jarrad Harford
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