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Breakeven points from strategy

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Reference no: EM133111948

An investor buys 100 shares of XYZ stock at $65/share and one XYZ 65 put @ $2 to hedge the position. The investor is confident that the stock is a good long-term investment with additional upside potential, but is concerned about a near-term weakness in the overall market that could lead to a loss on his portfolio. What is this investor's

  1. maximum gain, 
  2. maximum loss, and 
  3. breakeven points from this strategy?

Reference no: EM133111948

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