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Graphing: In the space below, plot the profit function of the futures bet along with the profit function of the hedge (the FO puts).
Graphing: In the space below, plot the profit function of the futures bet along with the profit function of the hedge (the FO puts). Label as point B, your profit on your futures bet along with the hedge where the futures price at expiration is 2,800. Then label as points C, the profit/loss associated with the futures bet and the profit/loss associated with the hedge where the futures price at expiration is 2,400 (there are two point C's). Make sure to label the breakeven point for the FO puts.
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