What is her profit-loss

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Q1. Diane does not want to buy stock because the market is flat. Instead she shorts stock @ $55, writes a 60call @ $5.50 and writes a $50 put @ $2.50. If the stock goes to $90 what is her profit/loss. If the stock goes to $18 what is her profit/loss?

Q2. Allan thinks he understands how to make money quick. He shorts stock @ $75 and writes a 60put for $3.50. If the stock goes to $50, what is his profit/loss? If the stock goes to $110, what is his profit/loss?

Q3. Maizie has a long stock position @ $55. She is concerned that the stock will drop and thus protects her position with a long 60 put @ 1.50. If the stock goes to $35, show her profit/loss.

Reference no: EM132959078

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