a put option in finance allows you to sell a share of stock at a given price in the future. there are different types of put optione $.$ a european put option allows you to sell a share of stock at a given price. called exercise price, at a particular point in the time after the purchase of the option. for example,suppose you purchase a $6$ month european put option for a share of stock with an exercise price of $$26.$if $6$ months later the stock price per share is $$26$ or more, the options has no value. if in $6$ months the stock price is lower than $$26$ per share then you can purchase the stock and immediately sell it at the higher exercise price of $$26.$ if the price per share in $6$ month is $$22\mathrm{.}50,$ you can purchase a share of stock for $$22\mathrm{.}50$ and then use the put optionto immediately sell the share for $$26.$ your profit would be the difference between $$26-$$$22\mathrm{.}50=$$$3\mathrm{.}50$ per share,less the cost of option. if you paid $$1\mathrm{.}00$ per put option,then your profit would be $$3\mathrm{.}50-$$$1\mathrm{.}00=$$$2\mathrm{.}50$ per share. the point of purchasing a european option is to limit the risk of dcrease in the per share price of the stock. suppose you purchased $200$ shares of the stock at $$28$ per share and $90$ six month european put options with exercise price of $$26.$ each put option costs $$1\mathrm{.}00$

using data tables, construct model that show the value of the portolio with options and without options for a share price in $6$ months between $$20$ and $$29$ per share in increments of $$1\mathrm{.}00.$ what is benefit of the put options on the portfolio value for the different share price

share price bebefit of option

$$20$

$$21$

$$22$

$$23$

$$24$

$$25$

$$26$

$$27$

$$28$

$$29$

discuss the value of portfolio with and without the european put options

the lower the stock price, the more beneficial put options. the options are worth nothing at a stock price of $$\_\_\_\_$or higher. There is a benefit from the put options to the overall portfolio for stock price of $$\_\_\_\_\_$or lower.