Question
EXERCISE #1: Options basics. Figure out the payoff and the profit per share in A-C: A. You sell a 47 put for 4. Stock ends
EXERCISE #1: Options basics. Figure out the payoff and the profit per share in A-C: A. You sell a 47 put for 4. Stock ends at $48.
Payoff=................ Profit=............................ B. You sell a 54 put for 4. Stock ends at $47.
Payoff=................. Profit=.......................... C. You sell a 50 put for 3, and buy a 45 put for 2. Stock ends at $45.
Payoff=................ Profit=............................ D. You buy a 52 put when the stock trades at 49.
Intrinsic Value= ............. Premium > .........................
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
