1. You purchase one September 50 put contract for a put premium of $2. What is the maximum profit that you
could gain from this strategy?
E. None of these is correct
-$200 + $5,000 = $4,800 (if the stock fa
Basic Numerical Procedures
for the Instructor
Chapter 19 presents the standard numerical procedures used to value derivatives when
analytic results are not avai1 able. These involve binomialjtrinomial trees , Monte Carlo