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lesantik [10]
3 years ago
7

Which of the following describes a protective put?

Physics
1 answer:
11111nata11111 [884]3 years ago
7 0

A long put option on a stock plus a long position in the stock describes a protective put.

Option a

<h3><u>Explanation:</u></h3>

A protective put position can be defined by buying or owning stock and buying put options on a share-for-share basis. It is a "risk-management strategy" that uses the options contracts which investors employ to guard themselves against the loss of owning a stock or asset.  In this strategy, traders believe that the price of the asset may decline in the future.  

<u>For example:</u> Suppose 50 shares are purchased (or owned) and one put is purchased. So, when the stock price declines, the purchased put protects the strike price.

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A horizontal spring-mass system has low friction, spring stiffness 160 N/m, and mass 0.3 kg. The system is released with an init
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Answer:

(a) 0.38 m

(b) 2.78 m/s

(c) 0.11 watt

Explanation:

mass, m = 0.3 kg

spring constant, K = 160 N/m

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initial speed, u = 3 m/s

(a) Let the maximum stretch is y.

Use conservation of energy

Initial potential energy + initial kinetic energy = final potential energy

0.5 x K x d² + 0.5 x m x u² = 0.5 x K x y²

160 x 0.12 x 0.12 + 0.3 x 0.12 x 0.12 = 160 x y²

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y = 0.38 m

y = 38 cm

(b) Let v is the maximum speed.

The speed is maximum when the stretch in the spring is zero, so by use of conservation of energy

Initial potential energy + initial kinetic energy = final kinetic energy

0.5 x K x d² + 0.5 x m x u² = 0.5 x m x v²

160 x 0.12 x 0.12 + 0.3 x 0.12 x 0.12 = 0.3 x v²

2.304 + 0.00432 = 0.3 v²

v = 2.78 m/s

(c) The time period of the spring mass system is given by

T=2\pi\sqrt{\frac{m}{K}}

T=2\pi\sqrt{\frac{0.3}{160}}

T = 0.272 second

Energy dissipated per cycle = 0.03 J

Power, P = 0.03 / 0.272 = 0.11 Watt

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