Complete · 60 Days136 / 188
MediumOptions & GreeksAcceptance 69%
Worst Case with a Protective Put
BarclaysJ.P. Morgan
You own a stock bought at 45 for a $2 premium. What is the most you can lose on the combined position (in dollars per share)?
Approach
The put floors your sale price at 45.
Don’t forget the premium you paid.
Answer
Show the final answer
The answer is 7. Sign in free for the full worked solution and to check your own answer.
Related problems
Delta of an ATM CallEasyDelta of a ForwardEasyGamma Near ExpiryMediumMost Negative Put DeltaEasySign of ThetaMediumSign & Peak of VegaEasy
More in Options & Greeks.