Jane purchased 100 shares of Netflix, Inc. (Ticker: NFLX) at $288.94 today. At the same time, she purchased a put option with exercise price at $270 and an expiration date on June 15, 2018. The premium for the put option is $15.15. (3 points)
What is Jane’s Break Even point?
Show the contingency graph and label each point.
What is Jane’s profit/loss if the stock price on the expiration date is (1) $200, (2) $300, (3) $400?