Question
A trader invests in Tesla by buying 100 shares in October for $30 per share. She also buys 100 put options for $5 each as
A trader invests in Tesla by buying 100 shares in October for $30 per share. She also buys 100 put options for $5 each as insurance in case the stock drops sharply. The put options have a strike price of $30 and a maturity date of December. What is the gain or loss if the spot price in December is $30?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
