Calculate payoff and profit of the strategy

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a) If you feel that Stock price can go up to $3,000 or can go down to $1,800, but you aren't sure about the direction, what strategy would be more appropriate when you choose options with strike price of 2,100. Explain. Calculate the payoff and profit of the strategy.

b) At what stock price(s) your profit would be zero in the above case?

c) If you expect stock price is more likely to go up to $3,000, what strategy would better serve you? Explain. Calculate payoff and profit of the strategy.

Reference no: EM132960826

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