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xiaoyu000 xiaoyu000
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Alan just bought 100 shares of Global, Inc. (GLO) at $45 per share and as protection he also bought a three-month put with a $45 strike price at a cost of $400. One of two scenarios is expected to occur in the next three months: (a) GLO stock declines to $33; and (b) GLO stock rises to $61. Calculate the profit or loss under each scenario and explain how the hedge has provided protection for Alan's position in GLO. Ignore transaction costs.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
Authors:
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duankong-feiduankong-fei
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