A Stock Is Currently Trading at $50 $- 16.67 \%$ B) $0 \%$

question 3

Multiple Choice

A stock is currently trading at $50. A one-year at-the-money put costs $10. The stock price at the end of one year can be equally likely to be one of the following three values: {20, 50, 80}. What is the expected one-year return of a protective put portfolio?

• A) \(- 16.67 \%\)
• B) \(0 \%\)
• C) \(+ 16.67 \%\)
• D) \(+ 50 \%\)

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Definitions:

Distancing

The process of creating emotional or physical space from a person or situation, often as a coping mechanism.

Emotion Regulation

The processes by which individuals influence their emotions, how they experience and express them, often involving strategies to manage and adjust emotional responses to situations.

Sympathy

Feelings of sorrow or concern for another.

Identity Fluid

Describing an individual's identity as flexible and capable of changing across time and contextual situations, sometimes within the spectrum of gender identity.