Min Has Created the Following Portfolio

question 35

Multiple Choice

Min has created the following portfolio:
bought a share for $20
bought 3 puts,strike price $18
maturity 1yr
Suppose at expiration S_T is $17.What is the payoff of her strategy?

• A) $0
• B) $3
• C) −$2
• D) −$3

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Definitions:

Demand for Labor

The total amount of workers that employers are willing and able to hire at a given wage rate in a specific labor market.

Supply of Labor

The total hours that workers are willing and able to work at a given wage rate.

Wages

Remuneration provided to laborers for their services, usually based on an hourly, daily, or task-completion method.

Total Compensation

The complete pay package for employees including all forms of money, benefits, services, and in-kind payments.