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Consider the following information on put and call options for company ABC (Show calculations and brief...

Consider the following information on put and call options for company ABC (Show calculations and brief discuss )

Strike Price

Put Price

Call Price

$32.50

$2.85

$1.65

  1. Calculate the net value of a protective put position at a stock price at expiration of $20, and a stock price at expiration of $45.
  2. Calculate the net value of a covered call position at a stock price at expiration of $20, and a stock price at expiration of $45.
  3. Calculate the payoffs of a short straddle at a stock price at expiration of $20 and a stock price at expiration of $45.
  4. Calculate the payoffs of a long strap at a stock price at expiration of $20 and a stock price at expiration of $45.

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