Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You write a put with a strike price of $95 on stock that you have shorted at $95 (this is a covered put). What are

You write a put with a strike price of $95 on stock that you have shorted at $95 (this is a covered put). What are the expiration date profits to this position for stock prices of $85, $90, $95, $100, and $105 if the put premium is $3.20? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Stock price Short profit Put payoff Put profit Net profit
$85.00
$90.00
$95.00
$100.00
$105.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investments Valuation and Management

Authors: Bradford D. Jordan, Thomas W. Miller

5th edition

978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292

More Books

Students also viewed these Finance questions

Question

Determine miller indices of plane A Z a/2 X a/2 a/2 Y

Answered: 1 week ago

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago