Question
1. (60 points) Refer to the following table to answer the questions below: STOCK PRICE STRIKE PRICE CAL JUNE PUT JUNE 69 65 6.75 1.75
1. (60 points) Refer to the following table to answer the questions below:
| STOCK PRICE | STRIKE PRICE | CAL JUNE | PUT JUNE |
| 69 | 65 | 6.75 | 1.75 |
| 69 | 70 | 3.50 | 4.50 |
a. (8 points) Draw the profit/loss diagram for long puts maturing in June for the two strike prices ($65 and $70) on one graph. Be sure to identify and plot the exact break-even point, maximum and minimum profit/loss.
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Entrepreneurial Finance
Authors: Simon Hulme, Chris Drew
1st Edition
1352009811, 978-1352009811
