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The CEO of Micro Technology, Inc (MU) is in the middle of an earnings call, and you think they sound really nervous and disorganized. MU
The CEO of Micro Technology, Inc (MU) is in the middle of an earnings call, and you think they sound really nervous and disorganized. MU is currently trading at $53.51/share. You enter a 1 month long put on MU for $2.25 per share, with a strike price of $50.50. Assume a 2.5% interest rate per annum. (1 point) Draw a payoff and profit diagram of this position. Indicate your breakeven point. b) By the end of your contract, MU is trading at $49.42. What is your total profit or loss?
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