Consider buying a call option with a strike of $20 and selling a put option with...
G) Consider buying a call and a put option, both with a strike price of $20 and the same expiration. Fill in the table for the payoffs of the straddle
The goal of this project is to examine option trading strategies. The project requires you to work in Excel with the provided spreadsheet. A) Bull Spread Payoff Long call option K1 = Short call option K2 = Stock Price (ST) Total Payoff $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 A) Consider buying a call option with a strike of $20 and a selling call option with strike of $30. Fill in the table for...
Buying a put option and selling a call option are both considered a way of expressing a bearish view on a stock (i.e., that its price will decline). Draw the hockey-sticks for both buying a put and selling a call in terms of the stock price at expiry S(T), the strike (X), and the premium (C/P). Be sure to label the graphs including breakeven points and upside/downside
Open Buying a Call Stock Option Open Buying a Put Stock Option Number Strike Stock Call Number Strike Stock Put of Contracts Price Price Premium of Contracts Price Price Premium 1 36 35 1.25 1 36 35 1.45 Intrinsic Value Intrinsic Value Time Value Time Value Cost Cost Close Close Number Strike Stock Call Number Strike Stock Put of Contracts Price Price Premium of Contracts Price Price Premium 1 36 40 4.25 1 36 40 0.05 Intrinsic Value Intrinsic Value...
Draw the payoff diagram for owning (buying) a call and a put option with same strike price X. List some examples and explain it.
A synthetic European put option is created by: Buying the discount bond, buying the call option, and short-selling the stock. Buying the call option, short-selling the discount bond, and short-selling the stock. Short-selling the stock, buying the discount bond, and selling the call option.
ABC. Draw the payoff diagrams of buying and selling a put option and call option. Which has the highest exposure in terms of loss?
Consider a put option and a call option with the same strike price and time to maturity. Which of the following is TRUE? It is possible for both options to be in the money. One of the options must be either in the money or at the money. One of the options must be in the money. It is possible for both options to be out of the money.
Buying a Put Option: A put option trades on Swingline that has a strike price of $10.85 and a premium of $1.00. Calcuate the net profit or loss from BUYING a PUT option on Swingline if at the time of expiration the price per share of Swingline is $10.30.
Buying a Put Option: A put option trades on Swingline that has a strike price of $10.95 and a premium of $1.20. Calcuate the net profit or loss from BUYING a PUT option on Swingline if at the time of expiration the price per share of Swingline is $9.80.