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You simultaneously write a covered put and buy a protective call, both with strike prices of $40, on stock that you have shorted at $40.
You simultaneously write a covered put and buy a protective call, both with strike prices of $40, on stock that you have shorted at $40. What are the expiration date payoffs to this position for stock prices of $30, $35, $40, $45, and $50? (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Stock Price | Short Profit | Short Put Payoff | Protective Call Payoff | Total Payoff | ||||
$30 | $ | $ | $ | $ | ||||
$35 | $ | $ | $ | $ | ||||
$40 | $ | $ | $ | $ | ||||
$45 | $ | $ | $ | $ | ||||
$50 | $ | $ | $ | $ |
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