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market price for Alibaba Group Holding Limited. (Ticker: BABA) was $180.74 when Mary bought a put option today. The put premium is $4.97 and the
market price for Alibaba Group Holding Limited. (Ticker: BABA) was $180.74 when Mary bought a put option today. The put premium is $4.97 and the exercise price is $170. The will be expired on Jan. 17, 2020. a. Draw the contingency graph for Mary, Label each point/interaction on the graph. b. What is the break-even point for Mary? c. What are Mary's maximum profit and maximum loss? d. Show the profit/loss for Mary if, at the expiration date, the BABA price is (1) $150, (2) $168, and (3) $200. market price for Alibaba Group Holding Limited. (Ticker: BABA) was $180.74 when Mary bought a put option today. The put premium is $4.97 and the exercise price is $170. The will be expired on Jan. 17, 2020. a. Draw the contingency graph for Mary, Label each point/interaction on the graph. b. What is the break-even point for Mary? c. What are Mary's maximum profit and maximum loss? d. Show the profit/loss for Mary if, at the expiration date, the BABA price is (1) $150, (2) $168, and (3) $200
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