Question
You write a put with a strike price of $75 on stock that you have shorted at $75 (this is a covered put). What are
You write a put with a strike price of $75 on stock that you have shorted at $75 (this is a covered put). What are the expiration date profits to this position for stock prices of $65, $70, $75, $80, and $85 if the put premium is $2.80? (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
Stock price | Short profit |
| Short put payoff | Short put profit |
| Net profit | |||||||
$ | 65 |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
$ | 70 |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
$ | 75 |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
$ | 80 |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
$ | 85 |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
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