Question
In: Finance
Create an Iron Butterfly using the following options, also give the Max Profit / Max Loss...
- Create an Iron Butterfly using the following options, also give the Max Profit / Max Loss / Break Even Levels for the trade.
XYZ 30 Put @ 1.50
XYZ 35 Put @ 4.50
XYX 35 Call @ 3.50
XYZ 40 Call @ 1.00
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Construct an Iron Butterfly strategy using a table and draw the profit-loss diagram. An Iron Butterfly...
Construct an Iron Butterfly strategy using a table and draw the
profit-loss diagram. An Iron Butterfly requires that one buy an OTM
put with X1 , sell another ATM put with X2 , sell an ATM call with
X2 , and buy an OTM call with X3 . X1 , X2 , and X3 are evenly
spaced. Explain what are the similarities and differences between a
Butterfly and an Iron Butterfly
You wish to construct a short butterfly using the following options. Draw the contingency graph and...
You wish to construct a short
butterfly using the following options. Draw the contingency graph
and fully label the graph. (You must label the corresponding dollar
values for the max gain, max loss, and the spot rates for
break-even point(s), and all kinks)
The
following are contract characteristics of various options:
A: Put
option with a strike price of $0.75 and a premium of $0.04
B: Put
option with a strike price of $0.82 and a premium...
You wish to construct a short butterfly using the following options. Draw the contingency graph and...
You wish to construct a short
butterfly using the following options. Draw the contingency graph
and fully label the graph. (You must label the corresponding dollar
values for the max gain, max loss, and the spot rates for
break-even point(s), and all kinks)
The following are contract
characteristics of various options:
A:
Put option with a strike price of $0.75 and a premium of $0.04
B:
Put option with a strike price of $0.82 and a premium of $0.08
...
Create iron butterfly spread in excel, define its legs and draw the graph? ( use put,...
Create iron butterfly spread in excel, define its legs and draw
the graph? ( use put, call and/or premium )
Construct a profit and loss diagram (chart) for an Iron Condor on Netflix. This strategy consists...
Construct a profit and loss diagram (chart) for an Iron Condor
on Netflix. This strategy consists of selling one call spread and
one put spread (same expiration day). I would like to see the
diagram for a stock price of $310 to $410 in $1 increments.
Sell 1 Netflix call with a strike price of 365 and an option
premium of $21.16
Buy 1 Netflix call with a strike price of 375 and an option
premium of $17.08
Sell 1...
Graph the profit/loss for the following options positions. Long at-the-money call with strike 40 and premium...
Graph the profit/loss for the following options positions.
Long at-the-money call with strike 40 and premium 2;
Short at-the-money put with strike 40 and premium 2
Combination of the long call and short put, both with strike=40
and premium=2
Long straddle: buy call and put both with strike 40 and premium
3
Short straddle: sell call and put, both with strike 40 and
premium 3
a) Demonstrate how a butterfly spread can be constructed using either put or call options and...
a) Demonstrate how a butterfly spread can be
constructed using either put or call options and discuss the
circumstances under which a trader might construct such a
strategy.
Construct an asymmetric butterfly using the 950-, 1020-, and 1050-strike options. What is the minimum number...
Construct an asymmetric butterfly using the 950-, 1020-, and
1050-strike options. What is the minimum number of each option you
should buy or sell? Draw a profit diagram for the position and
specify the dollar value of the maximum profit and maximum loss.
Assume c(950)=$120.405, p(950)=$51.777, c(1020)=p(1020)=$84.470,
c(1050)=$71.802, p(1050)=$$101.214.
Using the following information ... to forecast the incremental expected Profit or Loss from the new...
Using the following information ... to forecast the
incremental expected Profit or Loss from the new
clinic.
Generic Hospital is contemplating the opening of a clinic in an
underserved rural community. The marketing people project 5,000
office visits in year one with an average charge of $100 per clinic
visit. The consensus is that half of the visits will be Medicare
patients with an average payment of $50 per visit. Thirty percent
(30%) of the visits are expected to be...
Construct a profit and loss statement using the following departmental figures and show the dollar amounts...
Construct a profit and loss statement using the following
departmental figures and show the dollar amounts for net sales,
total cost of goods sold, gross margin, expenses, and profit.
Gross sales $82,000
Customer returns and allowances $4,000
Inward freight $2,000
Workroom costs $1,000
Opening inventory at cost $17,000
Closing inventory at cost $14,000
Purchases at cost $36,000
Cash discounts 8%
Advertising $5,000
Rent $12,000
Salaries $17,000
Miscellaneous expenses $2,500
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