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

Question:

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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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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Question Posted: Jun 12, 2024 01:14 AM

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

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Corporate Finance

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