A one-year at-the-money put costs 10 the stock price at the


A stock is currently trading at $50. A one-year at-the-money put costs $10. The stock price at the end of one year can be equally likely to be one of the following three values:  {20, 50, 80}.

What is the expected one-year return of a protective put portfolio?

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Financial Management: A one-year at-the-money put costs 10 the stock price at the
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