Question
You own a put option on Ford stock with a strike price of $11. The option will expire in exactly six months. a. If the
You own a put option on Ford stock with a strike price of $11. The option will expire in exactly six months.
a. If the stock is trading at $6 in six months, what will be the payoff of the put?
b. If the stock is trading at $22 in six months, what will be the payoff of the put?
c. Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration.
PLEASE ANSWER A, B, & C
You own a put option on Ford stock with a strike price of $11. The option will expire in exactly six months. a. If the stock is trading at $6 in six months, what will be the payoff of the put? b. If the stock is trading at $22 in six months, what will be the payoff of the put? c. Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration. a. If the stock is trading at $6 in six months, what will be the payoff of the put? If the stock is trading at $6 in six months, the payoff of the put is $ (Round to the nearest dollar.)Step by Step Solution
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The Financial Crisis Implications For Research And Teaching
Authors: Ted Azarmi, Wolfgang Amann
1st Edition
3319205870, 978-3319205878
