Question
You now buy a put option on the portfolio of Apple and Google you created with a strike price of 100. Assuming the simulation is
You now buy a put option on the portfolio of Apple and Google you created with a strike price of 100. Assuming the simulation is set up correctly, the output is on page 2 of the file attached above. This page contains 100 values of the portfolio from 100 simulation runs sorted in increasing order. Using this output, what is the probability that this option expires in the money?
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To determine the probability that the put option expires in the money you need to f...
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Practical Management Science
Authors: Wayne L. Winston, Christian Albright
5th Edition
1305631540, 1305631544, 1305250907, 978-1305250901
