(Profit margin from underlying asset and put options) Using the data from the previous problem, compare the following three strategies in a single profit chart:

a. Purchase one share of stock and one put on the stock.

b. Purchase one share of stock and two puts on the stock.

c. Purchase of one share of stock and three puts on the stock.

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A Energy-R-Us, 1 stock price 2 Put price, X $20 = B 26.00 2.50 3 Stock price, ST, in 6 months Profit: 1 share +1 put Profit: 1 share +2 puts Profit: 1 share + 3 puts 4 5 0 6 5 7 10 8 15 9 20 10 25 11 30 12 35 13 40 14 45 15 50