Discussion Question from chapter 6:

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Discuss that if selling put option can act as a protective measure for a short stock position.

Then determine the profit equation for this position, and also identify the breakeven stock price at expiration and maximum and minimum profits.

Directions:

• Discuss the concepts, principles, and theories from your textbook.
• Your initial post should address all components of the question with a 500-word limit.
• Reply to at least two discussion posts with comments that further and advance the discussion topic.