Suppose an investor own 1,000 shares of Pear, Design a portfolio insurance strategy assuming a strike price of $100, time to maturity of one year, and a put price of $9 35 per share Compute the number of puts to purchase and the minimum level of the portfolio Compute the upside capture if the stock...

The initial value of this portfolio is 100000 1000 x 100 Th ...

Suppose an investor own 1,000 shares of Pear, Design a portfolio insurance strategy assuming a strike price

Question:

Suppose an investor own 1,000 shares of Pear, Design a insurance strategy assuming a of $100, time to of one year, and a put price of $9.35 per share. Compute the number of puts to purchase and the minimum level of the Compute the upside capture if the stock is trading at $120 per share in one year and if the stock is trading at $80 per share in one year?
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...