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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
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 options. A European put option allows you to sell a 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 six months is European put options with an exercise price of $26. Each put option costs $1. (a) Using data tables, construct a model that shows the value of the portfolio with options and without options for a share price in $20 and minus sign even if there is a + sign before the blank (Example: 300 ). If you answer is zero, enter " 0 ". (b) Discuss the value of the portfolio with and without the European put options. The lower the stock price, the beneficial the put options. The options are worth nothing at a stock price of $ or . There is a benefit from the put options to the overall portfolio for stock prices of or
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