Knowledge check

to protect your current profit on Alphabet stock, you bought the collar shown on the Bloomberg screen. At what spot level will you be protected from further losses if Alphabet stock were to fall?

Vega Price (3) Shares 20 vest 30 Pricing 32 Scenario 33) Matrix 34 Volatility 85 Backtest Underlying GOOGL US Equity ALPHABET INC-A Trade 08/25/2020 12:04 Und. Price 3 Mid 1,603.01 USD Settle 08/25/2020 Results Price (Total) 1,616.86 Currency USD -0.06 Time Value Price (Share) 1,616.8623 Delta (8) 19.11 Theta -0.03 Gearing 100.8641 Gamma (%) -0.2070 Rho -0.03 Break-Even () Collar Leg 1. Leg 2. Leg 3. Style Spot style Vanilla Exercise American Call/Put Put Call Direction Buy Buy Sell Strike 1,603.01 1,550.00 1,683.16 Strike Money 3.31% OTM 5.00% OTM 1.00 1.00 1.00 MM/DD/YYYY 11/23/2020 16:30 Time to Expiry 0 90 04:26 Model BS - disc. Vol BVOL Mid 36.299% Bid 33.6899 Forward Carry . 0 1,603.926 USD Rate MMkt 0 0.2343 Dividend Yield o 0.0008 Discounted Div Flow 0.00 Borrow Cost O 0.0008 Leg Prc (Total) 1,603.01 -74.52 Leg Prc (Share) 1,603.0100 88.3682 -74.5159 Leg Price (3) 100.0000 5.5126 -4.6485 Leg Delta (3) -38.98 -41.91 Leg Gamma (8) 0.0000 -2.3332 0.00 3.06 -3.11 OVME Expiry 88.37 100.00 2.1262 Close ? To protect your current profit on Alphabet stock, you bought the collar shown on the Bloomberg screen. At what spot level will you be protected from further losses if Alphabet stock were to fall? $1,603.01 $1,601.97 $1550 $1,680 (or $1,685) Submit