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Problem 3 – Naked Put A put with the strike price of $40 was sold short...

Problem 3 – Naked Put
A put with the strike price of $40 was sold short at $4.20 when the price of the underlying stock was $38.00 per share. Draw the gain/loss chart for the naked put.

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago
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