Question
In: Finance
Suppose you buy one SPX call option with a strike of 2140 and write one SPX...
Suppose you buy one SPX call option with a strike of 2140 and write one SPX call option with a strike of 2185. What are the payoffs at maturity to this position for S&P 500 Index levels of 2050, 2100, 2150, 2200, and 2250? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
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Solutions
jeff jeffy answered 5 months agoRelated Solutions
Suppose you buy one SPX call option with a strike of 2135 and write one SPX...
Suppose you buy one SPX call option with a strike of 2135 and
write one SPX call option with a strike of 2195. What are the
payoffs at maturity to this position for S&P 500 Index levels
of 2050, 2100, 2150, 2200, and 2250? (A negative value
should be indicated by a minus sign. Leave no cells blank - be
certain to enter "0" wherever required.)
Index
level Long
call payoff Short call
payoff
Total payoff
2050
2100
2150
2200 ...
You buy a share of stock, write a one-year call option with strike X, and buy...
You buy a share of stock, write a one-year call option with
strike X, and buy a one-year put option with same strike
X. You know that stock shares are currently traded at the
same price as the strike price of the options, i.e. options are
at the money and S=X. Your net outlay to establish
the entire portfolio is $30. Risk-free interest rate is 3%
-What must the strike price X be? The stock pays no
dividends.
- Find...
You buy a share of stock, write a one-year call option with strike X, and buy...
You buy a share of stock, write a one-year call option
with strike X, and buy a one-year put option with same strike X.
You know that stock shares are currently traded at the same price
as the strike price of the options, i.e. options are at the money.
Your net outlay to establish the entire portfolio is $50. Risk-free
interest rate is 4%
-What must the strike price be? The stock pays no
dividends.
- Find the one-year stock...
You buy one call and one put with a strike price of $60 for both. The call...
You buy one call and one put with a strike price of $60 for
both. The call premium is $5 and the put premium is $6.
What is the maximum loss from this strategy? [Using positive number
for profit, and negative number for loss]
You purchase one (1) call option with strike price 50 for $ 9 and write three...
You purchase one (1) call option with strike price 50 for $ 9
and write three (3) call options with strike 60 for $ 3. 4) Assume
that you may purchase calls with strike price 70 for $ 1. How many
options would you trade to prevent unbounded losses at maturity?
What would be the maximum extent of your losses after the purchase?
please show work
1. You own one call option and one put option on BP, both with a strike...
1. You own one call option and one put option on BP, both with a
strike price of 230. The price of BP is 226.
The interest rate is 3% and the time to expiration is
six months. Graph on the same graph the value of the call and the
put as the standard deviation of the price of Shell goes from 10 to
60 percent. (So that is two lines on the
same graph.)
Please include excel table and...
You own one call option and one put option on Shell, both with a strike price...
You own one call option and one put option on Shell, both with a
strike price of 80. The interest rate is 5% and the time to
expiration is nine months. The standard deviation of Shell is 25
percent. Graph on the same graph the value of the call and the put
as the price of Shell goes from 70 to 130. (So that is two lines on
the same graph.) Note:at least 50 data points on the graphs
Suppose that you purchased a call option with a strike price of $30 and paid a...
Suppose that you purchased a call option with a strike price of
$30 and paid a premium of $6.
2a) What is your payoff if the price of the
stock at expiration is $10?
-$6
-$20
$0
None of the above
2b) What is your profit if the price of the
stock at expiration is $10?
-$6
-$20
$0
None of the above
2c) What is your payoff if the price of the
stock at expiration is $70?
$0
$34...
You buy a call option and you buy a put option on firm DFE. The call...
You buy a call option and you buy a put option on firm DFE. The
call option has a strike price of $50 and you pay a premium of $4.
The put option also has a strike price of $50 and you pay a premium
of $4. Both options expire at the same time in three months from
now.
20. You are betting that the stock price of DFE:
A) Will remain fairly constant
B) Will increase by a large...
If we write a European call option on €, the strike price is $1.2141/€. The option...
If we write a European call option on €, the strike price is
$1.2141/€. The option premium is $0.0500/€. On the expiration date,
the market spot price is $1.3262/€. Then__
A. The option is exercised, and we lose $0.0621/€.
B. The option is not exercised, and we profit $0.0500/€
C. The option is exercised, and we lose $1.2762/€.
D. The option is not exercised, and we profit $0.1121/€
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