Assume that you own a put option on zereta stock with a, Ask an Expert

Finance

Assume that you own a put option on Zereta stock with a strike price of $26. When you bought the put, its cost to you was $4.0. The option will expire in exactly six months’ time. (Show your calculations)

a. If the stock is trading at $36 in six months, what will be the payoff of the put? What will be the profit of the put?

b. If the stock is trading at $16 in six months, what will be the payoff of the put? What will be the profit of the put?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92816672

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