Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our 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
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
