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Assume an investorsells a six-monthput option with an exercise price of $50 and a premium of $5.26. The payoff for the put at expiration is
Assume an investorsells a six-monthput option with an exercise price of $50 and a premium of $5.26. The payoff for the put at expiration is a function of the share price at that time. The investor forecastsa combination of five possible share prices that will occur in six-months time. What is the maximum profit, to theseller of the option?Give your answer to two decimal places.
Possible share price at expiration:
$29.94,$38.58,$43.21,$56.18,$67.80
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