Question
Kelly bought stock for $4 per share 12 years ago. Today, the stock sells for $54 per share. She is afraid the stock price
Kelly bought stock for $4 per share 12 years ago. Today, the stock sells for $54 per share. She is afraid the stock price will fall to $28 per share or rise to $60 is nothing bad happens. (equal chance) She can buy a put with a strike price of $55 for $5 per share. What is their expected value if no put? (50/50)
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Step: 1
To calculate the expected value without purchasing the put we need to consider the potential ou...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
