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Hi! I am a student at university, studying Corporate Finance & Incentives course, and I am having problems with these exercise questions. Could you help?

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Hi!

I am a student at university, studying Corporate Finance & Incentives course, and I am having problems with these exercise questions. Could you help?

image text in transcribed
Exercise On October 29, you own 100 shares of SPX, an ETF that tracks the SP500 index. The CBOE (Chicago Board Options Exchange) quotes the following prices for near the money put and call options that expire on November 30th. The ETF itself traded at 3302.15 USD on that day. In anticipation of the upcoming presidential election day on November 3rd you want to buy a "protective put" on the ETF. ^SPX (STANDARD & POORS 500 INDEX) Oct 29, 2020 @ 11:05 ET (Delayed) BID 3301.09 ASK 3303.44 VOL LAST 3302.15 CHANGE +31.1199 (+0.95%) Filters by: Volume: All Expiration Type: All Options Ranges Near the Money * Expirations 2020 November View Chain Options Chain Total Records: 52 Calls 11/30/2020 v Puts Last Net Bid Delta Gamma Int Strike Last Net Ask Vol Delta Gamma Int 128. 11 1247 1256 0 03211 05182 0.0013 50 SPXW 3295 000 146.87 1252 126 3 0 0 3211 -0.4817 0.0013 78 122.03 -0.57 121.7 1226 11 03195 0.5118 0.0013 541 SPXW 33001000 127.82 -9.78 1272 1283 3 03195 -0.4941 0.0013 2208 0 1187 119.6 0 0.3179 0.5053 0.0013 32 SPXW 33061000 29.02 -9.73 129.2 130.4 1 0.318 -0.4947 0.0013 147 104.69 -12 11 115.8 1167 3 03164 04987 0.0013 114 SPXW 33101000 139.3 0 131.2 1324 0 0.3164 -0.5012 0.0013 117 a) Identify the expiring put with an exercise price closest to, but not below, the current stock price. Determine the investment required to protect all 100 shares.! b) Determine the put price at expiration (November 30th) for each share price in 5 USD increments within a range of 150 USD of the SPX current price. c) Compute the profit or loss for each stock price on expiration used in b), the overall profit in USD and the overall return of the protective put, that is, combining the put and your ETF shares for each price used in b)

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