Question
1. An investor has unrealized gains in 100 shares of Amazon stock for which he does not wish to pay taxes. However, he is now
1. An investor has unrealized gains in 100 shares of Amazon stock for which he does not wish to pay taxes. However, he is now bearish upon the stock for the short term. The stock is at $76 and he buys a put with a strike of $75 for $200. At expiration the stock is at $81. What is the net gain or loss on the option portfolio?
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Risk Management And Financial Institution
Authors: John C. Hull
2nd Edition
0136102956, 9780136102953
