Break-even point in terms of the closing price of the stock

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Assume an investor writes a put option with a strike price of $35 for a premium of $2.80. This is a naked option (15 points) a. Evaluate potential gains and losses at expiration for the stock prices of 25, 35, and 45. b. What would be the break-even point in terms of the closing price of the stock? c. What is the max gain/loss d. Graph showing net profit.

Reference no: EM131087906

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Break-even point in terms of the closing price of the stock : Assume an investor writes a put option with a strike price of $35 for a premium of $2.80. This is a naked option (15 points) a. Evaluate potential gains and losses at expiration for the stock prices of 25, 35, and 45. b. What would be the break-even ..

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