Question
Consider a short position on a European Put option on 1 share of META at a strike Price of $118.0. The option premium is $5.55
Consider a short position on a European Put option on 1 share of META at a strike Price of $118.0. The option premium is $5.55 per share.
Create the profit/loss diagram of this position. If possible, mark the break-even price, maximum profit, and minimum profits, and prices at what is the maximum and minimum are reached.
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Derivative Pricing
Authors: Ambrose Lo
1st Edition
0367734214, 978-0367734213
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