Hello,

I was wondering if someone who understands derivatives could help with me with the below questions. There is 2 of them. For the first one, I would really appreicate any sight on how you came to the equations or if you use excel to find them. Thank you for the help! Thumbs up for anyone who can explain this to me.

See below.

A short stock position can be partially protected by selling a put. Determine the profit equations for this combined position, and identify the breakeven stock price at expiration and maximum and minimum profits. Note: This is not a protective put (which is a long stock and a long put) Explain the advantages and disadvantages to a covered ca writer of closing out the position prior to expiration