Question
An investor buysa one-year European-style put optionon the same stock.The strike is $105, and the premium is $10. In a year, the spot stock price
An investor buysa one-year European-style put optionon the same stock.The strike is $105, and the premium is $10.
In a year, the spot stock price is $90 per share. What is the payoff from financially settling the longput position?$__________
In a year, the spot stock price is $95 per share. What is the payoff from financially settling the longput position?$__________
In a year, the spot stock price is $100 per share. What is the payoff from financially settling the longput position?$__________
In a year, the spot stock price is $105 per share. What is the payoff from financially settling the longput position?$__________
In a year, the spot stock price is $110 per share. What is the payoff from financially settling the longput position?$__________
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