XYZ LTD shares are currently trading at $9.30. You currently hold a large parcel of shares...

XYZ LTD shares are currently trading at $9.30. You currently hold a large parcel of shares in XYZ and are concerned that the future share price may fall and your investment will decrease in value. You purchase a put option with an exercise price of $8.85 per share and pay a premium of $0.40 per share. Draw a fully labelled diagram of the position you have entered into.

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jeff jeffy answered 1 year ago

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