What would have been the cost of a protective put portfolio?
A) $48.81
B) $51.19
C) $52.38
D) $53.38

Name: What would have been the cost of a protective put portfolio? A) $48.81 B) $51.19 C) $52.38 D) $53.38
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

The cost of a protective put portfolio is calculated by adding the cost of the underlying asset and the cost of the put option.

Cost of underlying asset = $50
Cost of put option = $1.19 (calculated as $50 x 2.38%)

Total cost = $50 + $1.19 = $51.19

Therefore, the best choice is B.

What Would Have Been the Cost of a Protective Put