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Max Houck holds 8 0 0 thares of Boulder Gas and Light. He bought the stock several years ago at ( $ 5
Max Houck holds thares of Boulder Gas and Light. He bought the stock several years ago at $ and the shares are now trading at $ Max is concerned that the markat is boginning to softan. He doesn wart to aeil the stock, but he would like to be able to protect the profit he's made. He decides to hedge his position by buging puts on Bouldar GsL The threemanth puts calf a atrke price of $ and are currensy trading at $ a How much profit or loss wil Max mate on this deal if the price of Boulder GsL does indeed drop, to as share, by the expiration dase cn the puts? b How would he do if the stock kept going up in price and reached $ a share by the expiration date? c What de you sne as the major advantages of using pute as hedge venicles? strike price, trading af Explan
Max Houck holds thares of Boulder Gas and Light. He bought the stock several years ago at $ and the shares are now trading at $ Max is concerned that the markat is boginning to softan. He doesn wart to aeil the stock, but he would like to be able to protect the profit he's made. He decides to hedge his position by buging puts on Bouldar GsL The threemanth puts calf a atrke price of $ and are currensy trading at $ a How much profit or loss wil Max mate on this deal if the price of Boulder GsL does indeed drop, to as share, by the expiration dase cn the puts? b How would he do if the stock kept going up in price and reached $ a share by the expiration date? c What de you sne as the major advantages of using pute as hedge venicles? strike price, trading af Explan
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