Problem 15-17 Option Strategies (LO3, CFA5) You write a put with a strike price of $30 on stock that you have shorted at $30 (this is a "covered put"). What are the expiration date profits to this position for stock prices of $20, $25, $30, $35, and $40 if the put premium is $1.90? (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 $ $ $ $ $ 20.00 25.00 30.00 35.00 40.00 Put payoff Put profit Net profit
Problem 15-17 Option Strategies (LO3, CFA5) You write a put with a strike price of $30 on stock that you have shorted at $30 (this is a "covered put"). What are the expiration date profits to this position for stock prices of $20, $25, $30, $35, and $40 if the put premium is $1.90? (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 $ $ $ $ $ 20.00 25.00 30.00 35.00 40.00 Put payoff Put profit Net profit
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Problem 15-17 Option Strategies (LO3, CFA5)
You write a put with a strike price of $30 on stock that you have shorted at $30 (this is a "covered put"). What are the expiration date
profits to this position for stock prices of $20, $25, $30, $35, and $40 if the put premium is $1.90? (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.)
$
$
A
Stock price
20.00
25.00
30.00
35.00
40.00
Short profit
Put payoff
Put profit
Check my work
Net profit
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