Consider an options trader who sets up a condor trading strategy on Boston Scientific Corp. stock. The option trader buys a call option with a strike price of $25, sells a call option with a strike price of $30, sells a call option with a strike price of $40, and buys a call option with a strike price of $45. | ||||||
Complete the table below with the correct formulas to show the profit/loss for different values of the stock price at the expiration of the options. |
Call option | 1 | 2 | 3 | 4 | |
Strike price | $25 | $30 | $40 | $45 | |
Option price | $14.05 | $9.70 | $3.15 | $1.38 | |
Call option | |||||
Stock price | 1 | 2 | 3 | 4 | Profit/Loss |
$0 | -$14.05 | $9.70 | $3.15 | -$1.38 | -$2.58 |
$1 | $0.00 | ||||
$2 | $0.00 | ||||
$3 | $0.00 | ||||
$4 | $0.00 | ||||
$5 | $0.00 | ||||
^^THROUGH^^ |
$50 | $0.00 |
Strike | |||||
Price | 25 | 30 | 40 | 45 | P/L |
0 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
1 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
2 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
3 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
4 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
5 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
6 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
7 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
8 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
9 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
10 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
11 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
12 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
13 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
14 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
15 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
16 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
17 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
18 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
19 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
20 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
21 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
22 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
23 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
24 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
25 | -14.05 | 9.7 | 3.15 | -1.38 | -2.58 |
26 | -13.05 | 9.7 | 3.15 | -1.38 | -1.58 |
27 | -12.05 | 9.7 | 3.15 | -1.38 | -0.58 |
28 | -11.05 | 9.7 | 3.15 | -1.38 | 0.42 |
29 | -10.05 | 9.7 | 3.15 | -1.38 | 1.42 |
30 | -9.05 | 9.7 | 3.15 | -1.38 | 2.42 |
31 | -8.05 | 8.7 | 3.15 | -1.38 | 2.42 |
32 | -7.05 | 7.7 | 3.15 | -1.38 | 2.42 |
33 | -6.05 | 6.7 | 3.15 | -1.38 | 2.42 |
34 | -5.05 | 5.7 | 3.15 | -1.38 | 2.42 |
35 | -4.05 | 4.7 | 3.15 | -1.38 | 2.42 |
36 | -3.05 | 3.7 | 3.15 | -1.38 | 2.42 |
37 | -2.05 | 2.7 | 3.15 | -1.38 | 2.42 |
38 | -1.05 | 1.7 | 3.15 | -1.38 | 2.42 |
39 | -0.05 | 0.7 | 3.15 | -1.38 | 2.42 |
40 | 0.95 | -0.3 | 3.15 | -1.38 | 2.42 |
41 | 1.95 | -1.3 | 2.15 | -1.38 | 1.42 |
42 | 2.95 | -2.3 | 1.15 | -1.38 | 0.42 |
43 | 3.95 | -3.3 | 0.15 | -1.38 | -0.58 |
44 | 4.95 | -4.3 | -0.85 | -1.38 | -1.58 |
45 | 5.95 | -5.3 | -1.85 | -1.38 | -2.58 |
46 | 6.95 | -6.3 | -2.85 | -0.38 | -2.58 |
47 | 7.95 | -7.3 | -3.85 | 0.62 | -2.58 |
48 | 8.95 | -8.3 | -4.85 | 1.62 | -2.58 |
49 | 9.95 | -9.3 | -5.85 | 2.62 | -2.58 |
50 | 10.95 | -10.3 | -6.85 | 3.62 | -2.58 |
Formula of above is given below
Strike | |||||
Price | 25 | 30 | 40 | 45 | P/L |
0 | MAX(($A3-B$2),0)-14.05 | .- (MAX(($A3-C$2),0)-9.7) | .-(MAX(($A3-D$2),0)-3.15) | MAX(($A3-E$2),0)-1.38 | SUM(B3:E3) |
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