Graph the value of your portfolio as a function of the relevant stock price. Graph for...
Graph the value of your portfolio as a function of the relevant stock price. Graph for stock prices between 100 and 160. Assume today is the last day for exercising your options. (Your graph should include at least 50 data points and a table explaining each data point.)
- You own (are long) a call with an exercise price of 103 and a put at 120.
Homework Answers
Attached in the picture is the graphed solution on Excel.
Long call refers to the Right to buy and short call is the right to sell.
Currently, you are long a call and no call option would be exercised below spot price of 102, as at that price and below, it is better to buy from the market, than exercise the call option.
Similarly, the long put position will not be exercised after spot price of 120, as it is beneficial to sell in the market, then to exercise the put option.
Value of Long Call = Spot - Strike
Value of Long Put = Strike - Spot
Thus, the Portfolio Value = Value of Long Call + Value of Long Put.
Create a scattered graph with the portfolio values as show in the picture.
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Graph the value of your portfolio as a function of the relevant
stock price. Graph for...
Using excel, graph the value of your portfolio as a function of the relevant stock price....
Using excel, graph the value of your portfolio as a function of the relevant stock price. Graph for stock prices between 100 and 160. Assume today is the last day for exercising your options. (Your graph should include at least 50 data points and a table explaining each data point.) - You are short a call at 120, and long a put at 130.
Using excel, graph the value of your portfolio as a function of the relevant stock price....
Using excel, graph the value of your portfolio as a function of the relevant stock price. Graph for stock prices between 100 and 160. Assume today is the last day for exercising your options. (Your graph should include at least 50 data points and a table explaining each data point.) - Long a call at 135, short a put at 115, short a share of stock.
Using excel, graph the value of your portfolio as a function of the relevant stock price....
Using excel, graph the value of your portfolio as a function of the relevant stock price. Graph for stock prices between 100 and 160. Assume today is the last day for exercising your options. (Your graph should include at least 50 data points and a table explaining each data point.) - Short a call at 125, long a put at 153, and long one share of the stock.
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