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If a trader buys a $30 strike European put for $4 on a stock currently priced at $28 where does the stock need to close
If a trader buys a $30 strike European put for $4 on a stock currently priced at $28 where does the stock need to close at expiration of the option for him to break even? Consider a call option on AAPL with a strike price of $215. Assume the call option is priced at $2.00. Assume AAPL stock is trading at $214. 1. 2. What is the Intrinsic value of the option? What is the time value of the option? a. b. 3. Assume you have a portfolio made up of one put (CBOE exchange traded) with a delta of -.85 and are long 85 shares of the underlying stock priced at $220. If the stock rises to $221, what is our best estimate for change in value of your portfolio
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