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:
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Remark
All vertical lines are of the form x = a. The y value only places where the point is on the grid.
For this particular question the x value of the point is where the vertical line is. At x = -2 draw a vertical line. The graph shows what this looks like.
The graph (x = - 2) is in red.
The point (-2,10) is green.
Answer:
About 9.8 inches
Step-by-step explanation:
Answer:
10 - 10 as in 10 minus 10? 10 minus 10 is 0. Both of you are wrong.
