PLEASE NOTE: I POSTED THIS QUESTION BEFORE BUT ONE EXPERT SIMPLY COPIED THE ANSWER TO ANOTHER...

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PLEASE NOTE: I POSTED THIS QUESTION BEFORE BUT ONE EXPERT SIMPLYCOPIED THE ANSWER TO ANOTHER QUESTION THAT WAS USING THE SAMEINFORMATION.
WHAT I'M LOOKING FOR ARE 2 GRAPHS.
An investor is provided with the following information onAmerican put and call options on a share of a company listed on theLondon Stock Exchange:
Call price (c₀) = 33p
Put price (p₀) = 49p
Exercise price (X) = 480p
Today: 11 June 2019
Expiry date: 20 December 2019
Current stock price (S₀) = 458p
Risk-free interest rate (r) = 2.4%
The company pays no dividends.
Draw a graph showing the prices at expiry of a fiduciary calland another one showing a protective put, including all of theircomponents, in relation to the price of the stock in a rangebetween 350p and 600p.

Answer & Explanation Solved by verified expert

4.3 Ratings (837 Votes)

FIDUCIARY CALLUnder this strategy you buy a CALL instead of the shareThe money saved by buying Call instead of share is invested at riskfree rateStrategy of Fiduciary Call Option1 Buy a CALL See Answer

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PLEASE NOTE: I POSTED THIS QUESTION BEFORE BUT ONE EXPERT SIMPLYCOPIED THE ANSWER TO ANOTHER QUESTION THAT WAS USING THE SAMEINFORMATION.WHAT I'M LOOKING FOR ARE 2 GRAPHS.An investor is provided with the following information onAmerican put and call options on a share of a company listed on theLondon Stock Exchange:Call price (c0) = 33pPut price (p0) = 49pExercise price (X) = 480pToday: 11 June 2019Expiry date: 20 December 2019Current stock price (S0) = 458pRisk-free interest rate (r) = 2.4%The company pays no dividends.Draw a graph showing the prices at expiry of a fiduciary calland another one showing a protective put, including all of theircomponents, in relation to the price of the stock in a rangebetween 350p and 600p.