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28 Sep 2019
Suppose you buy one SPX call option with a strike of 1425 and write one SPX call option with a strike of 1450. What are the payoffs at maturity to this position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Index Level Long Call Payoff Short Call Payoff Total Payoff 1350 1400 1450 1500 1550
| Suppose you buy one SPX call option with a strike of 1425 and write one SPX call option with a strike of 1450. What are the payoffs at maturity to this position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) |
| Index Level | Long Call Payoff | Short Call Payoff | Total Payoff | |||||||
| 1350 | ||||||||||
| 1400 | ||||||||||
| 1450 | ||||||||||
| 1500 | ||||||||||
| 1550 | ||||||||||
Irving HeathcoteLv2
28 Sep 2019
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| You buy a straddle, which means you purchase a put and a call with the same strike price. The put price is $3.40 and the call price is $4.80. Assume the strike price is $95. |
| a. | What are the per share expiration date profits to this position for stock prices of $85, $90, $95, $100, and $105? (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your "Total profit" answers to 2 decimal places. Omit the "$" sign in your response.) |
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| $85 | $ | $ | $ | $ | ||||
| $90 | $ | $ | $ | $ | ||||
| $95 | $ | $ | $ | $ | ||||
| $100 | $ | $ | $ | $ | ||||
| $105 | $ | $ | $ | $ | ||||
| b. | What are the break-even stock prices? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
| High | Low | |
| Break-even prices | $ | $ |
