Question
You have bought 1 share of stock for $22.99 and 1 put option on the same stock. This portfolio is called a protective put. The
You have bought 1 share of stock for $22.99 and 1 put option on the same stock. This portfolio is called a protective put. The option has an exercise price of $20, costs $2.04, and expires in 8 months. Attempt 1/10 for 10 pts. Part 1 What is your profit from buying the stock if the stock price is $20 in 8 months (in $)? Ignore the option for now. Submit Attempt 1/10 for 10 pts. Part 2 What is your profit from buying the option if the stock price is $50 in 8 months (in $)? Ignore the stock for now. Submit Attempt 1/10 for 10 pts. Part 3 What is your total profit if the stock price is $100 in 8 months (in $)?
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