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Calculate the payoff of the portfolio

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Reference no: EM132752754

You have purchased a call option and a put option on the same underlying stock. The strike price of the call option is 110 SEK and the strike price of the put option is 90 SEK.

Calculate the payoff of the portfolio for different values of the stock price on the expiration date.

Use the stock prices given below

Now assume that we paid a total premium of 20 SEK to obtain this portfolio.

What is then our total profit given the different stock prices on the expiration date?

Stock price on exercise date Profit of portfolio ?

50 SEK
60 SEK
70 SEK
80 SEK
90 SEK
100 SEK
110 SEK
120 SEK
130 SEK
140 SEK

Reference no: EM132752754

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