Business, 26.11.2019 23:31 dnjames01

You form a collar by buying a put with an exercise price of x1 = $43 and a premium of p = $6, and selling a call with an exercise price of x2 = $85 and a premium of c = $3. both options mature in 6 months, and both have the same underlying asset. in addition, you buy the underlying asset for its current spot price of s = $63. find the profit of this collar at expiration if the ending price of the underlying asset is st = $60. do not use the $ symbol in your answer; just write a numerical value. of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive.

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You form a collar by buying a put with an exercise price of x1 = $43 and a premium of p = $6, and se...

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