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Mr. Green believes that the stock Future LTD will appreciate in value. The current price of Future LTD is R60. His friend advises him that

Mr. Green believes that the stock "Future LTD" will appreciate in value. The current price of Future LTD is R60. His friend advises him that a protective put strategy will allow Mr Green to achieve his objective while limiting the downside risk if the share price of Future Ltd depreciates. Use the following information from the option quote to construct a protective put strategy at an exercise price of 55 and answer the questions that follow. Note: with respect to premium quotation, 1 contract = 100 options

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