Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
The maximum possible profit = $7068
For given question,
One Microsoft July $72 put contract for a premium of $1.32
The payoff arise from put option is max (K - S, 0) - P
Now it would be maximum at S = 0
And, the maximum payoff is
K - 0 - P
= K - P
= 72 - 1.32
= $70.68
We assume that for each and every contract the number of shares is 100
So, the maximum profit gained from this strategy is
= $70.68 × 100 shares
= $7068
The maximum profit that will be gained from this strategy is $7068
Therefore, the maximum possible profit = $7068
Learn more about the profit here:
https://brainly.com/question/20165321
#SPJ4
Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
