-50 -100 100 Chart Title 50 50 0 25 50 100 125 150 175 ⚫Own Assest Own Put Protective Put So 100 K1 = $90 K2 = $100 K3 = $ = 110t=1 r = 15% d = 0 ITM Call = $ 24.81 ATM Call = $18.84 OTM Call = $13.97 Re - create t Picture shows payoff diagram of a dif example

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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Question
-50
-100
100
Chart Title
50
50
0
25
50
100
125
150
175
⚫Own Assest
Own Put
Protective Put
Transcribed Image Text:-50 -100 100 Chart Title 50 50 0 25 50 100 125 150 175 ⚫Own Assest Own Put Protective Put
So 100 K1 = $90 K2 = $100 K3 = $
=
110t=1 r = 15% d = 0 ITM Call = $
24.81 ATM Call = $18.84 OTM Call
= $13.97 Re - create t Picture shows
payoff diagram of a dif example
Transcribed Image Text:So 100 K1 = $90 K2 = $100 K3 = $ = 110t=1 r = 15% d = 0 ITM Call = $ 24.81 ATM Call = $18.84 OTM Call = $13.97 Re - create t Picture shows payoff diagram of a dif example
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