A put currently is traded on stock XYZ; it has strike prices…
A put currently is traded on stock XYZ; it has strike prices of $54 and maturities of six months. What will be the profit/loss to an investor who buys the put for $6.40 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. ) (8’) Stock Price Value of Put at expiration Initial Cost Profit/Loss per share a 44 6.4 b 49 6.4 c 54 6.4 d 59 6.4 e 64 6.4