49. Payoff and profit for writer and buyer - put option.

49. Payoff and profit for writer and buyer - put option. -...

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PAYOFF S MAX(E-S,0) PROFIT 25 25 20 28 22 17 30 20 15 35 15 10 40 10 5 45 5 0 48 2 -3 50 0 -5 52 0 -5 55 0 -5 58 0 -5 60 0 -5 65 0 -5 70 0 -5 PAYOFF S MIN(S-E,0) PROFIT 25 -25 -20 28 -22 -17 30 -20 -15 35 -15 -10 40 -10 -5 45 -5 0 48 -2 3 50 0 5 52 0 5 55 0 5 58 0 5 60 0 5 65 0 5 70 0 5 EXERCISE PRICE: $50 PRICE OF PUT: $5 Payoff of put's holder = MAX(E-S,0) 0 5 10 15 20 25 30 20 30 40 50 60 70 80 Stock price ($) Payoff ($) Profit of put's holder = MAX(E-S,0)-$5 -10 -5 0 5 10 15 20 25 20 30 40 50 60 70
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Unformatted text preview: 80 Stock price ($) Profit ($) Payoff of put's writer = MIN(S-E,0)-30-25-20-15-10-5 20 30 40 50 60 70 80 Stock price ($) Profit of put's writer = MIN(S-E,0)+$5-25-20-15-10-5 5 10 20 30 40 50 60 70 80 Stock price ($)...
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This note was uploaded on 06/02/2011 for the course STATS 183 taught by Professor Nicolas during the Spring '11 term at UCLA.

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