6) Protective Put: What is the breakeven and the minimum profit of Put 130 and Put 120? (N=100)

TABLE 6.1 DCRB OPTION DATA, MAY 14 CALLS PUTS EXERCISE PRICE MAY JUNE JULY MAY JUNE JULY 120 8.75 15.40 20.90 2.75 9.25 13.65 16.60 19.65 125 5.75 13.50 18.60 4.60 11.50 130 3.60 11.35 16.40 7.35 14.25 Current stock price: 125.94 Expirations: May 21, June 18, July 16 Risk-free rates (continuously compounded): 0.0447 (May); 0.0446 (June); 0.0453 (July)