5. Assume that you have shorted the put option in Problem 4. a. If the stock is...

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5. Assume that you have shorted the put option in Problem 4.

a. If the stock is trading at $8 in three months, what will you owe?

b. If the stock is trading at $23 in three months, what will you owe?

c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration.

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Oct 21, 2024 11:01 AM

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5. Assume that you have shorted the put option in Problem 4. a. If the stock is...

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Fundamentals Of Corporate Finance

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