For an assumed portfolio lets buy 500 shares of your


For an assumed portfolio: let's buy 500 shares of your company's stock and 5 contracts of a put option written on your company. Please use at-the-money strike price. Please use the maturity that is at least one month later. a) How much would you pay to buy these put options? Please include a screen picture in your spreadsheet. b) If the price for your company were to decrease by 10%, how much (in dollars) profit & loss would you make on your portfolio? (hint: assume only the intrinsic value and the premium you paid to purchase the option). Please show your profit and loss for both the stocks and the put options.

Company- A, Agilent Technologies, Inc.

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Financial Management: For an assumed portfolio lets buy 500 shares of your
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