Accounting,Applied Sciences,Architecture and Design,Biology,Business & Finance,Calculus,Chemistry,Computer Science,Geology Hide all
Teaching Since:
Jul 2017
Last Sign in:
399 Weeks Ago
Questions Answered:
5023
Tutorials Posted:
5024
Category > Business & FinancePosted 07 Aug 2017My Price3.00
An investor plans to sell 100 shares of ABC Corp. stock in six months.
An investor plans to sell 100 shares of ABC Corp. stock in six months. She is worried the stock price may fall significantly over the next six months. The spot price of the stock is $65.36 and she buys a six month put with a strike of $60 for $0.541 per share. At expiration the stock is at $55.93. What is the net economic gain or loss on the entire stock & Option portfolio?