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Question 33 Not yet answered Marked out of 1.00 Flag question Question text XYZ share price is currently $45. You are considering two possible investment
Question33
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XYZ share price is currently $45. You are considering two possible investment strategies to profit from a predicted fall in XYZ share price: (i) short sell 50 shares at the spot price, or (ii) enter a long put option (quoted at $2.5) which allows you to sell 100 shares at a strike price of 40.
Calculate the share price at which the two strategies generate the same net profit.
Donotenter the dollar sign ($).
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