Option prices of alphabet (google) as of a closing price on 21st june is 800 and excercise date is july 14. and the stock price is 959.45
Diagram a protective put strategy (Please identify premiums paid and/or received and any other information needed )
a. Show the maximum loss and identify that point on the graph.
b. Show the maximum profit and identify that point on the graph.
c. Show the breakeven stock price and identify that point on the graph.
d. Diagram a-c above for a higher exercise price.
e. Explain why a higher exercise price changes the numbers/points for a-c.
f. Diagram a-c above for a lower exercise price.
g. Explain why a lower exercise price changes the numbers/points for a-c.
h. Explain a protective put, when you would want to use it and why.
i. Explain how and why a protective put is like buying insurance.
Please answer the question with the respective diagram and and answer the question alphabetically how it is arranged.