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Calculating Cash P&L for a Put Option

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Part of the book series: Global Financial Markets series ((GFM))

Abstract

Our cash P&L model for a European put option is a mirror image of our cash P&L for a European call option model. The difference arises from how we hedge a put versus how we hedge a call.

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© 2015 Jawwad Ahmed Farid

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Farid, J.A. (2015). Calculating Cash P&L for a Put Option. In: An Option Greeks Primer — Building Intuition with Delta Hedging and Monte Carlo Simulation Using Excel. Global Financial Markets series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137371676_6

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