Resulting payoff from the combination of options

Assignment Help Financial Management

Reference no: EM131995449

Draw the resulting payoff from the following combination of options. Make sure that you specify the coordinates of the payoff (x,y) at the intercept and at every strike price.

a. 1 long call with strike price 10 and 1 short call with strike price 12.

b. 1 short put with strike price 5 and one long put with strike price 9.

c. 1 long call with strike price 10 and 2 short call with strike price 12.

d. 5 long calls with strike price 12 and 2 short calls with strike price 14.

e. 3 long put with strike price 5, 2 short puts with strike price 7 and 4 long puts with strike price 9.

f. 1 short put with strike price 4, 1 long call with strike price 7 and long 1 stock.

g. 2 short stocks, 1 long put at strike price 5 and 1 long call at strike price 9.

Reference no: EM131995449

Questions Cloud

How much has the annual effective rate of interest increased : What were the original mortgage payments? By how much has the annual effective rate of interest increased?

Premium of put and premium of call option : What is the (no-arbitrage) spread between the premium of a put and a premium of a call option, both with the same strike price of K=200.

Combination of options of call option leads to bull spread : Which combination of options of call option leads to the Bull Spread?

What is the irr of the project and should you take it : what is the cost of the initial investment (in millions)? What is the IRR of the project and should you take it?

Resulting payoff from the combination of options : Draw the resulting payoff from the following combination of options.

The single-factor apt model that resembles market model : The single-factor APT model that resembles the market model uses _________ as the single factor.

Thinking about buying some shares of razortronics : An investor is thinking about buying some shares of Razortronics, Inc., at $60 a share. what rate of return can the investor expect to earn on this investment?

Stock dividend yield-book value and earnings per share : The stock's dividend yield. Book value per share. Earnings per share.

What is the additional cash flow in year three : The firm's marginal federal-plus-state tax rate is 30%. What is the additional (nonoperating) cash flow in Year 3?

User Account

All Pages