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A stock is selling for $35. At the same time a six-month put option to sell the stock for $35 is selling for $3. If
A stock is selling for $35. At the same time a six-month put option to sell the stock for $35 is selling for $3.
- If the investor purchases BOTH the stock AND the put (i.e., construct a protective put), what is the net dollar profit or loss if the price ends at $0, $30, $35, $49, or $1000 at maturity? (please make a Table showing the results).
- What is the maximum potential loss from this protective put?
- What is the maximum potential gain from this protective put?
- What is the break-even stock prices
Please show work, thank you!!!
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