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Stock price and option quotes for the stock

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Consider the following stock price and option quotes for the stock of Gone-a-Golf'n, Inc., a firm specializing in high-end golf vacations for the 1%.

Stock X Call Call Put Put
Price Exp Strike Bid Ask Bid Ask
$10 Sep $10 $2 $3 $2 $3
$10 Sep $8 $5 $6 $1 $2

a. Assume you own GG stock today at its current price of $10. Rumors of an accounting scandal are flying, and you want to protect your position, but not sell your stock. Plot and label the provided payoff diagram that reflects the simple option strategy that will allow you to protect the value of your GG shares while also profiting from the upside.

Reference no: EM133004392

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