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Consider a put option on Netflix (NFLX) that matures on September 17. The option has a strike price of $135 and a premium of $17.
Consider a put option on Netflix (NFLX) that matures on September 17. The option
has a strike price of $135 and a premium of $17.
a.
Plot the contingency graph for the option. Be sure to label maximum
gains/losses, the breakeven point, and moneyness for both the buyer and
seller.
b.
At maturity, NFLX shares are trading for $182. What are the profits to the
buyer and seller?
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