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Exercise 1 Please show all your calculations and formulas. If the price of the put option is 4.0 and it enables us to sell the
Exercise 1
Please show all your calculations and formulas.
If the price of the put option is 4.0 and it enables us to sell the underlying asset at a strike price of 20 next Monday then what is the break-even level of this assets' market price of Monday? Note: The option purchase starts generating profit if the market price is below the break-even level.
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