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What is your profit from buying the stock

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Question - You have bought 1 share of stock for $31.34 and 1 put option on the same stock. The option has an exercise price of $30, costs $3.76, and expires in 8 months.

1. What is your profit from buying the stock if the stock price is $20 in 8 months (in $)? Ignore the option for now.

2. What is your profit from buying the option if the stock price is $50 in 8 months (in $)? Ignore the stock for now.

3. What is your total profit if the stock price is $100 in 8 months (in $)?

4. What is this portfolio called?

Reference no: EM132969803

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