Problem 1/ For risk management purposes, Reem decided to both own the stock and long a put on the stocks. He entered this position with 100 contracts each containing 35 strategies. She bought the stocks initially for $ 57.5per stock and bought the put for $ 8.5 with a strike price of $ 52.5. The expiration of the contract is within 2 months.

a/ What is the amount of her initial investment b/ What is her gain/loss if the stock price in 2 months is $ 54.5 c/ What is her maximum loss?

d/ What is the breakeven price?