1 assume the purchase price of the stock s0 does not equal, Ask an Expert

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1. Assume the purchase price of the stock (S0) does not equal the strike price (X) of the put. The minimum payoff from a protective put is the _________.?

A. stock price at expiration

B. put premium

C. strike price plus the put premium minus the stock price at expiration

D. strike price of the put

E. None of the above

2. Assume the purchase price of the stock (S0) does not equal the strike price of the call. The maximum payoff from a covered call positions is the _________.

A. call premium

B. stock price

C. strike price of the call

D. strike price minus the stock price

E. None of the above

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92725186

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