Using strike 195, and S1 $170, calculate the payoff and profit of a protective put.v
- Using strike 195, and S1 $170, calculate the payoff and profit of a protective put.v
Homework Answers
Put Strike = $ 195 and Underlying Asset Price = $ 170, Put Premium = $ 1
Protective Put implies holding a long position in the underlying asset while purchasing a put option.
Put Payoff = (Strike Price - Underlying Asset Price) - Put Premium = 195 - 170 - 1 = $ 24
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Using strike 195, and S1 $170, calculate the payoff and profit
of a protective put.v
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Using strike 225 and S1 $250 construct a long straddle and determine the profit and ROI.
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