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For example, suppose you bought 100 shares of stock at the price $50. But you think the price might go down. So you want to
For example, suppose you bought 100 shares of stock at the price $50. But you think the price might go down. So you want to buy a put option to protect yourself by long a put option with the strike price of $50.
Draw the profit graph for the portfolio assuming the unit of trade equal to 100 and the put option is trading at $3.
Please explain how to set up the graph. Thank You
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