Graph the value of your portfolio as a function of the relevant stock price. Graph for...

Graph the value of your portfolio as a function of the relevant stock price. Graph for stock prices between 50 and 100.

You own (are long) a call with an exercise price of 70 and a put at 64.

You are short a call at 90, and long a put at 75.

Short a call at 85, long a put at 89, and long one share of the stock.

Long a call at 75, short a put at 75, short a share of stock.

Expert Solution

1	Long a call with an exercise price of 70 and a put at 64.

		A	B	C=A+B
	Price at expiration	Gain/(Loss) on Long Call at 70	Gain/(Loss) on Long Put at 64	Value of portfolio
	$50	$0	$14	$14
	$51	$0	$13	$13
	$52	$0	$12	$12
	$53	$0	$11	$11
	$54	$0	$10	$10
	$55	$0	$9	$9
	$56	$0	$8	$8
	$57	$0	$7	$7
	$58	$0	$6	$6
	$59	$0	$5	$5
	$60	$0	$4	$4
	$61	$0	$3	$3
	$62	$0	$2	$2
	$63	$0	$1	$1
	$64	$0	$0	$0
	$65	$0	$0	$0
	$66	$0	$0	$0
	$67	$0	$0	$0
	$68	$0	$0	$0
	$69	$0	$0	$0
	$70	$0	$0	$0
	$71	$1	$0	$1
	$72	$2	$0	$2
	$73	$3	$0	$3
	$74	$4	$0	$4
	$75	$5	$0	$5
	$76	$6	$0	$6
	$77	$7	$0	$7
	$78	$8	$0	$8
	$79	$9	$0	$9
	$80	$10	$0	$10
	$81	$11	$0	$11
	$82	$12	$0	$12
	$83	$13	$0	$13
	$84	$14	$0	$14
	$85	$15	$0	$15
	$86	$16	$0	$16
	$87	$17	$0	$17
	$88	$18	$0	$18
	$89	$19	$0	$19
	$90	$20	$0	$20
	$91	$21	$0	$21
	$92	$22	$0	$22
	$93	$23	$0	$23
	$94	$24	$0	$24
	$95	$25	$0	$25
	$96	$26	$0	$26
	$97	$27	$0	$27
	$98	$28	$0	$28
	$99	$29	$0	$29
	$100	$30	$0	$30

2	Short a call at 90, and long a put at 75.

		A	B	C=A+B
	Price at expiration	Gain/(Loss) on ShortCall at 90	Gain/(Loss) on Long Put at 75	Value of portfolio
	$50	$0	$25	$25
	$51	$0	$24	$24
	$52	$0	$23	$23
	$53	$0	$22	$22
	$54	$0	$21	$21
	$55	$0	$20	$20
	$56	$0	$19	$19
	$57	$0	$18	$18
	$58	$0	$17	$17
	$59	$0	$16	$16
	$60	$0	$15	$15
	$61	$0	$14	$14
	$62	$0	$13	$13
	$63	$0	$12	$12
	$64	$0	$11	$11
	$65	$0	$10	$10
	$66	$0	$9	$9
	$67	$0	$8	$8
	$68	$0	$7	$7
	$69	$0	$6	$6
	$70	$0	$5	$5
	$71	$0	$4	$4
	$72	$0	$3	$3
	$73	$0	$2	$2
	$74	$0	$1	$1
	$75	$0	$0	$0
	$76	$0	$0	$0
	$77	$0	$0	$0
	$78	$0	$0	$0
	$79	$0	$0	$0
	$80	$0	$0	$0
	$81	$0	$0	$0
	$82	$0	$0	$0
	$83	$0	$0	$0
	$84	$0	$0	$0
	$85	$0	$0	$0
	$86	$0	$0	$0
	$87	$0	$0	$0
	$88	$0	$0	$0
	$89	$0	$0	$0
	$90	$0	$0	$0
	$91	($1)	$0	($1)
	$92	($2)	$0	($2)
	$93	($3)	$0	($3)
	$94	($4)	$0	($4)
	$95	($5)	$0	($5)
	$96	($6)	$0	($6)
	$97	($7)	$0	($7)
	$98	($8)	$0	($8)
	$99	($9)	$0	($9)
	$100	($10)	$0	($10)

3	Short a call at 85, long a put at 89, and long one share of the stock.
	Share Price is not mentioned. Assume that purchase price of share=75
		A	B	C	D=A+B+C
	Price at expiration	Gain/(Loss) on ShortCall at 85	Gain/(Loss) on Long Put at 89	Gain/(Loss) on Long one share at 75	Value of portfolio
	$50	$0	$39	($25)	$14
	$51	$0	$38	($24)	$14
	$52	$0	$37	($23)	$14
	$53	$0	$36	($22)	$14
	$54	$0	$35	($21)	$14
	$55	$0	$34	($20)	$14
	$56	$0	$33	($19)	$14
	$57	$0	$32	($18)	$14
	$58	$0	$31	($17)	$14
	$59	$0	$30	($16)	$14
	$60	$0	$29	($15)	$14
	$61	$0	$28	($14)	$14
	$62	$0	$27	($13)	$14
	$63	$0	$26	($12)	$14
	$64	$0	$25	($11)	$14
	$65	$0	$24	($10)	$14
	$66	$0	$23	($9)	$14
	$67	$0	$22	($8)	$14
	$68	$0	$21	($7)	$14
	$69	$0	$20	($6)	$14
	$70	$0	$19	($5)	$14
	$71	$0	$18	($4)	$14
	$72	$0	$17	($3)	$14
	$73	$0	$16	($2)	$14
	$74	$0	$15	($1)	$14
	$75	$0	$14	$0	$14
	$76	$0	$13	$1	$14
	$77	$0	$12	$2	$14
	$78	$0	$11	$3	$14
	$79	$0	$10	$4	$14
	$80	$0	$9	$5	$14
	$81	$0	$8	$6	$14
	$82	$0	$7	$7	$14
	$83	$0	$6	$8	$14
	$84	$0	$5	$9	$14
	$85	$0	$4	$10	$14
	$86	($1)	$3	$11	$13
	$87	($2)	$2	$12	$12
	$88	($3)	$1	$13	$11
	$89	($4)	$0	$14	$10
	$90	($5)	$0	$15	$10
	$91	($6)	$0	$16	$10
	$92	($7)	$0	$17	$10
	$93	($8)	$0	$18	$10
	$94	($9)	$0	$19	$10
	$95	($10)	$0	$20	$10
	$96	($11)	$0	$21	$10
	$97	($12)	$0	$22	$10
	$98	($13)	$0	$23	$10
	$99	($14)	$0	$24	$10
	$100	($15)	$0	$25	$10

4	Long a call at 75, short a put at 75, short a share of stock.
	Share Price is not mentioned. Assume that Selling price of share=75
		A	B	C	D=A+B+C
	Price at expiration	Gain/(Loss) on LongCall at 75	Gain/(Loss) on ShortPut at 75	Gain/(Loss) on Shortone share at 75	Value of portfolio
	$50	$0	($25)	$25	$0
	$51	$0	($24)	$24	$0
	$52	$0	($23)	$23	$0
	$53	$0	($22)	$22	$0
	$54	$0	($21)	$21	$0
	$55	$0	($20)	$20	$0
	$56	$0	($19)	$19	$0
	$57	$0	($18)	$18	$0
	$58	$0	($17)	$17	$0
	$59	$0	($16)	$16	$0
	$60	$0	($15)	$15	$0
	$61	$0	($14)	$14	$0
	$62	$0	($13)	$13	$0
	$63	$0	($12)	$12	$0
	$64	$0	($11)	$11	$0
	$65	$0	($10)	$10	$0
	$66	$0	($9)	$9	$0
	$67	$0	($8)	$8	$0
	$68	$0	($7)	$7	$0
	$69	$0	($6)	$6	$0
	$70	$0	($5)	$5	$0
	$71	$0	($4)	$4	$0
	$72	$0	($3)	$3	$0
	$73	$0	($2)	$2	$0
	$74	$0	($1)	$1	$0
	$75	$0	$0	$0	$0
	$76	$1	$0	($1)	$0
	$77	$2	$0	($2)	$0
	$78	$3	$0	($3)	$0
	$79	$4	$0	($4)	$0
	$80	$5	$0	($5)	$0
	$81	$6	$0	($6)	$0
	$82	$7	$0	($7)	$0
	$83	$8	$0	($8)	$0
	$84	$9	$0	($9)	$0
	$85	$10	$0	($10)	$0
	$86	$11	$0	($11)	$0
	$87	$12	$0	($12)	$0
	$88	$13	$0	($13)	$0
	$89	$14	$0	($14)	$0
	$90	$15	$0	($15)	$0
	$91	$16	$0	($16)	$0
	$92	$17	$0	($17)	$0
	$93	$18	$0	($18)	$0
	$94	$19	$0	($19)	$0
	$95	$20	$0	($20)	$0
	$96	$21	$0	($21)	$0
	$97	$22	$0	($22)	$0
	$98	$23	$0	($23)	$0
	$99	$24	$0	($24)	$0
	$100	$25	$0	($25)	$0

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