You own 100 shares of stock ABC,priced at $75. You want to
protect against a price decline. You plan to hedge with an OPTION,
having a Strike Price = 70 and a (per share) option price of $4.00
( real position, the option, and overall outcomes)
a) Specify the option position, and Draw the 3 or 4 relevant
“final graphs”
b) On the graphs, specify the $ outcomes if the ABC stock
price is $52, 72, 92 when the option...