Explain the relationship between options costs and profits under a put option insurance strategy
What will be an ideal response?
Answer:
The higher strike puts have higher premiums since they are deeper in the money. Deep in-the-money puts have higher profit potential as prices decline. Lower strike puts cost less, but have reduced profit potential.
Business
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Prescriptive marketing models can be used to identify any of the following except:
a. RFM segments that should be reached because they are most profitable. b. RFM segments that are not worthy of pursuing because they are unprofitable. c. RFM segments that are not worthy of pursuing due to budget constraints. d. All of the above
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Define systematic and unsystematic risk. What method is used to measure a firm's market risk?
What will be an ideal response?
Business