Question
An investor buys 100 shares of XYZ stock at $65/share and one XYZ 65 put @ $2 to hedge the position. The investor is confident
An investor buys 100 shares of XYZ stock at $65/share and one XYZ 65 put @ $2 to hedge the position. The investor is confident that the stock is a good long-term investment with additional upside potential, but is concerned about a near-term weakness in the overall market that could lead to a loss on his portfolio. What is this investor's
- maximum gain,
- maximum loss, and
- breakeven points from this strategy?
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Analysis and Design of Analog Integrated Circuits
Authors: Paul R. Gray, Paul J. Hurst Stephen H. Lewis, Robert G. Meyer
5th edition
1111827052, 1285401107, 9781285401102 , 978-0470245996
