Question
Consider an a European put option on Apple Inc. with one month left to maturity. Apple Inc. Currently trades at $110, the put option currently
Consider an a European put option on Apple Inc. with one month left to maturity. Apple Inc. Currently trades at $110, the put option currently trades at $2, the strike price is $111 and the interest rate is zero.
a)If Apple Inc.at maturity date trades at $0. What is the payoff of your portfolio?b)If Apple Inc. at maturity date trades at $100. What is the payoff of your portfolio?
c)If Apple Inc. at maturity date instead trades at $109. What is the payoff of your portfolio?
d)If Apple Inc. at maturity date instead trades at $111. What is the payoff of your portfolio?
e)If Apple Inc. at maturity date instead trades at $120. What is the payoff of your portfolio?
g)If Apple Inc.at maturity date trades at $0. What is the payoff of your portfolio?h)If Apple Inc. at maturity date trades at $100. What is the profit of your portfolio?i)If Apple Inc. at maturity date instead trades at $109. What is the profit of your portfolio?
j)If Apple Inc. at maturity date instead trades at $111. What is the profit of your portfolio?
k)If Apple Inc. at maturity date instead trades at $120. What is the profit of your portfolio?
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A Handbook Of Mutual Fund Investing
Authors: Barry G Dolgin
1st Edition
1456489704, 978-1456489700
