You have purchased 100 shares of Apple Inc. stock and plan to hold them until June 2018. You set up a bottom line in the investment: you dont want to lose more than $8 per share and you decide to use options to realize the goal.

1. On Dec 1, 2017, you go to Nasdaq (www.nasdaq.com) to look for the options that mature in June 2018. The information is in the excel file attached.

2. What is the current stock price of Apple Inc. on Dec 1? (1 point)

3. You decide to use the protective put strategy to achieve your goal. Briefly describe whats protective put strategy? (1 point)

4. Create an excel table in the format given to you to calculate the profits of protective put using each of the option available (use the last price as the price of the option). (5 points)

5. How will you construct your portfolio? Which option will you choose and why? (1 points)

6. Draw the graph of the profit of your portfolio with options you selected. (2 points)

Company	Symbol		Last Sale	Change Net / %
Apple Inc.	AAPL		$170.92	-0.93	-0.74%
Option Chain for Apple Inc. (AAPL)
Calls	Last	Chg	Bid	Ask	Vol	Open Int	Root	Strike	Puts	Last	Chg	Bid	Ask	Vol	Open Int
15-Jun-18	22	-0.7	22.15	22.55	47	5984	AAPL	155	########	6	0.3	5.75	6	5	9330
15-Jun-18	18.75	-0.97	18.8	19.15	523	9458	AAPL	160	########	7.72	0.52	7.4	7.6	30	3606
15-Jun-18	15.15	-1.15	15.75	16.05	104	5033	AAPL	165	########	9.55	0.55	9.35	9.5	30	4006
15-Jun-18	13.18	-0.57	13.05	13.25	375	11446	AAPL	170	########	11.65		11.6	11.8	0	3693
15-Jun-18	10.85	-0.45	10.7	10.9	189	15082	AAPL	175	########	15.15	1.48	14.25	14.4	7	7648
15-Jun-18	8.47	-0.63	8.65	8.85	74	7546	AAPL	180	########	16.5		17.2	17.35	0	1951
15-Jun-18	6.8	-0.53	6.95	7.1	58	4482	AAPL	185	########	21.07		20.45	20.7	0	1631

Protective put
Stock Prices
Beginning Market Price	(input)
Ending Market Price	(input)
Options
Options Strike	Price	Profit
(input)	(input)	(formula)
(input)	(input)	(formula)
(input)	(input)	(formula)
(input)	(input)	(formula)
(input)	(input)	(formula)
(input)	(input)	(formula)
(input)	(input)	(formula)