What is your profit/loss if stock price on expiration date

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You purchased Netflix at $140.71/share in 2017. Now, Netflix has gone up to $288.94 today. You believe that Netflix will continue going up but you would like to protect the profit you have already earned by engaging in “Protective Put” strategy just in case it goes down in the future. You decide to purchase a put option with an expiration date on June 15, 2018, and K=$270 and premium = $15.15. (3 points)

a) Show the contingency graph and label each point.

b) What is your profit/loss if the stock price on the expiration date is (1) $200, (2) $300, (3) $400?

Reference no: EM132023417

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