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NOTE: this question is 20 points so be sure to try to answer as many parts as you can for partial credit If you think
NOTE: this question is 20 points so be sure to try to answer as many parts as you can for partial credit If you think a company's stock will fall moderately from it's current price of $100, and you Buy ATM Put Strike: $ 100 Premium: $7 and you Sell an OTM Put strike:$75, Premium: $3 The net premium you will pay is $ The maximum profit including the premium you can make is $ The breakeven for this strategy is $ . This strategy is called a
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