Calculate dollar return on the various portfolio strategies

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Question - Calculate the dollar return on the various portfolio strategies.

1. Assume that you have purchased a call option with a strike price $60 for $5. At the same time you purchase a put option on the same stock with a strike price of $60 for $4. If the stock is currently selling for $75 per share.

2. Assume that you purchased shares of a stock at a price of $35 per share. At this time you wrote a call option with a $35 strike and received a call price of $2. The stock currently trades at $70.

Reference no: EM132523847

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