Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. You short a XYZ stock for $1000 and write a 6-month 950-strike put with premium $51.777. What is your maximum profit? (The risk-free interest
3. You short a XYZ stock for $1000 and write a 6-month 950-strike put with premium $51.777. What is your maximum profit? (The risk-free interest rate is 2% for 6 months.
(a) 52.812 (b) 73.134 (c) 122.813 (d) Unlimited
The answer should be C but I can't figure out how to get it
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Statement Analysis
Authors: Andrew P.C.
1st Edition
1520985002, 978-1520985008
