Graph all the possible profit outcomes (for all possible STs) of a long put held until expiration if the exercise price is $750 and the premium paid was $52.47. What is the profit if the stock price at expiration is equal to $703.92? Place a dot on the graph when ST = $703.92 and label the dot "A". What is the profit if the stock price at expiration is $812.39? Place a dot on the graph for ST = $812.39 and label the dot "B".

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ee 406.

Graph all the possible profit outcomes (for all possible STs) of a long put held until expiration if the exercise price is $750 and the premium
paid was $52.47.
What is the profit if the stock price at expiration is equal to $703.92? Place a dot on the graph when ST = $703.92 and label the dot "A".
What is the profit if the stock price at expiration is $812.39? Place a dot on the graph for ST = $812.39 and label the dot "B".
Transcribed Image Text:Graph all the possible profit outcomes (for all possible STs) of a long put held until expiration if the exercise price is $750 and the premium paid was $52.47. What is the profit if the stock price at expiration is equal to $703.92? Place a dot on the graph when ST = $703.92 and label the dot "A". What is the profit if the stock price at expiration is $812.39? Place a dot on the graph for ST = $812.39 and label the dot "B".
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