Max Houck holds 600 shares of Boulder Gas and Light He bought the slock several years ago at 552.58 , and the shares are now trading at 579 .00. Max is concmrred that the market is beginning to solten. He doesnt want to sell the ssock, but he would like to be able to protect the profit he s made. He decides to hedge his position by buying 6 puts on Boulder GBL. The three-month puts carry a strike price of $79.00 and are curtenty trading ar 53.32 . a. How much profit or loss wil Max make on this deal if the price of Boulder G8L does indeed drop, to $60.so a share, by the espinsson dath on the puts? b. How would he do if the stock kept going up in price and reoched 584.50 a share by the expiration date? c. What do you see as the major atvantages of uting puts as hedge vehicles? d. Would Max have been better off uting in-the-money puts- that is, pots with an 587.00 strke price etat are trading at 510.307 How about uting out of dtie money pute - say, those with a $73.50 sirike price, trading at $1.10. Explain. a. If the price of Beulder GkL does indeed drop, to $60.50 a share, by the exgiration dute on the puts, Max wul have a grober (or losa) of s (Round to the neares! cent) Max Houck holds 600 shares of Boulder Gas and Light He bought the slock several years ago at 552.58 , and the shares are now trading at 579 .00. Max is concmrred that the market is beginning to solten. He doesnt want to sell the ssock, but he would like to be able to protect the profit he s made. He decides to hedge his position by buying 6 puts on Boulder GBL. The three-month puts carry a strike price of $79.00 and are curtenty trading ar 53.32 . a. How much profit or loss wil Max make on this deal if the price of Boulder G8L does indeed drop, to $60.so a share, by the espinsson dath on the puts? b. How would he do if the stock kept going up in price and reoched 584.50 a share by the expiration date? c. What do you see as the major atvantages of uting puts as hedge vehicles? d. Would Max have been better off uting in-the-money puts- that is, pots with an 587.00 strke price etat are trading at 510.307 How about uting out of dtie money pute - say, those with a $73.50 sirike price, trading at $1.10. Explain. a. If the price of Beulder GkL does indeed drop, to $60.50 a share, by the exgiration dute on the puts, Max wul have a grober (or losa) of s (Round to the neares! cent)