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Problem 28-06 The price of a stock is $35. A put option to sell that stock at $36 is currently selling for $4. You buy
Problem 28-06 The price of a stock is $35. A put option to sell that stock at $36 is currently selling for $4. You buy the stock and the put. Complete the following table and answer the questions. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any. If the answer is zero, enter "0". Profit on stock Profit on put Net profit $ S S Price of the stock $22 29 36 S S S S $ 43 $ $ $ $ $ 50 $ $ 64 $ S $ a. What is the maximum possible profit on the position? The maximum possible profit is -Select- v. b. What is the maximum possible loss on the position? Enter your answer as a positive value. $ C. What is the range of stock prices that generates a profit? The position generates a profit as long as the price of the stock exceeds $ d. What advantage does this position offer? Enter your answer as a positive value. Round your answer to the nearest dollar. The investor limits the -Select to -Select- $ a: unlimited / $10 / $25 / $29 d: net profilt / net loss to not more than / not less than
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