Question

Answer all they way to stock price of $101 Butterfly Spread Put: Long K1 & K3...

Answer all they way to stock price of $101

Butterfly Spread Put: Long K1 & K3 PE and Short Two K2 PE
K1    = $55 K2     = $60 K3     = $65
C1     = $5 C2     = $6 C3     = $10
Stock Price Long K1 Put Long K3 Put Short K2 Put Profits
$20
$24
$28
$32
$36
$40
$44
$48
$52
$55
$58
$60
$63
$65
$69
$73
$77
$81
$85
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

ДА В с Butterfly Spread Put: D E - F G H K1 $55.00 K2 $5.00 P2 $60.00 K3 $6.00 P3 $65.00 $10.00 Stock Price $20.00 $24.00 $28

Cell reference -

A B D F G C Butterfly Spread Put: 55 K1 K260K365 P3 P1 P2 Stock Price 120 24 36 40 44 55 Long K1 Put LoneV Long K3 Put Short

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Add a comment
Know the answer?
Add Answer to:
Answer all they way to stock price of $101 Butterfly Spread Put: Long K1 & K3...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A combination of Long 1 Put at K1, Short 2 Puts at K2, Short 100 shares...

    A combination of Long 1 Put at K1, Short 2 Puts at K2, Short 100 shares of Stock at K2 and Long 1 Call at K(3) is an example of: O A Strangle O B Straddle C Bull Spread O D Butterfly Given: S(0) 50; r 0.05; T 6 months; K49. What is a lower bound for an American Call Option on non-dividend paying stock? O A C<or 50 O B Cor 2.21 c c>or=1

  • 1. Forecast demand for Year 4. a. Explain what technique you utilized to forecast your demand....

    1. Forecast demand for Year 4. a. Explain what technique you utilized to forecast your demand. b. Explain why you chose this technique over others. Year 3 Year 1 Year 2 Actual Actual Actual Forecast Forecast Forecast Demand Demand Demand Week 1 52 57 63 55 66 77 Week 2 49 58 68 69 75 65 Week 3 47 50 58 65 80 74 Week 4 60 53 58 55 78 67 57 Week 5 49 57 64 76 77...

  • Use the accompanying data set on the pulse rates​ (in beats per​ minute) of males to...

    Use the accompanying data set on the pulse rates​ (in beats per​ minute) of males to complete parts​ (a) and​ (b) below. LOADING... Click the icon to view the pulse rates of males. a. Find the mean and standard​ deviation, and verify that the pulse rates have a distribution that is roughly normal. The mean of the pulse rates is 71.871.8 beats per minute. ​(Round to one decimal place as​ needed.) The standard deviation of the pulse rates is 12.212.2...

  • Answer Question 3 (16) (a) ANOVA output: 3 points (b) Null and alternative hypotheses in term...

    answer Question 3 (16) (a) ANOVA output: 3 points (b) Null and alternative hypotheses in terms of the population means: 3 points Pooled estimate of the common variance: 2 points Value of the test statistic: 2 points Null distribution: 2 points The P-value: 2 points Conclusion in plain language: 2 points the following is the data use stat crunch or excel Category code score C 1 45 C 1 53 C 1 72 C 1 55 C 1 67 C...

  • Student stress at final exam time comes partly from the uncertainty of grades and the consequence...

    Student stress at final exam time comes partly from the uncertainty of grades and the consequences of those grades. Can knowledge of a midterm grade be used to predict a final exam grade? A random sample of 200 BCOM students from recent years was taken and their percentage grades on assignments, midterm exam, and final exam were recorded. Let’s examine the ability of midterm and assignment grades to predict final exam grades. The data are shown here: Assignment Midterm FinalExam...

  • 3. For the Price variable, test the hypothesis of µ being different than 11,500 at the...

    3. For the Price variable, test the hypothesis of µ being different than 11,500 at the 5% level of significance: (a) (10 pts) State your null and alternative hypotheses. (b) (10 pts) Find the relevant p-value and write it down. (c) (10 pts) What do you conclude, based on your findings? 1 2 3 4 5 6 1 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29...

  • Forecasting method

    Use the moving average method to forecast period 105.Use the exponential smoothing method to forecast period 105.Use the time-series decomposition method to forecast period 105.Comparing the three methods, which one fits this situation best?The larger the parameter (n) is set, the more historical data are taken into account by the moving average.You can choose different parameter (n) to extrapolate to compare the prediction effect.In general, the parameter (n) should not be taken too large.Moving average.153025703560453055106560761085609580106101165012700136701470015760167301776018820197802090021840227702382024800257602676027770287902976030740317203267033690344703567036690376203865039610406204164042590436104460045630466004763048640496105059051610526305366054640558105679057820586505971060700616706269063730647306576066790678106887069890708707189072880739307498075900768607789078880798708084081860829108387084860858408654087780887508978090760917109273093750947509571096750977209877099740100750101760102780103800104850105Exponential smoothingsame153025703560453055106560761085609580106101165012700136701470015760167301776018820197802090021840227702382024800257602676027770287902976030740317203267033690344703567036690376203865039610406204164042590436104460045630466004763048640496105059051610526305366054640558105679057820586505971060700616706269063730647306576066790678106887069890708707189072880739307498075900768607789078880798708084081860829108387084860858408654087780887508978090760917109273093750947509571096750977209877099740100750101760102780103800104850105Time-series decomposition153025703560453055106560761085609580106101165012700136701470015760167301776018820197802090021840227702382024800257602676027770287902976030740317203267033690344703567036690376203865039610406204164042590436104460045630466004763048640496105059051610526305366054640558105679057820586505971060700616706269063730647306576066790678106887069890708707189072880739307498075900768607789078880798708084081860829108387084860858408654087780887508978090760917109273093750947509571096750977209877099740100750101760102780103800104850105

  • please help calculate, will give thumbs up B Netflix Inc Consolidated Balance Sheet 2017 2018 15,794,341...

    please help calculate, will give thumbs up B Netflix Inc Consolidated Balance Sheet 2017 2018 15,794,341 9,967,538 2,369,469 1,221,814 315,147 15,000 1,905,373 Current Assets Cash and Cash Equivalents Marketable Securities Current Content Asset, Net Other Current Assets Total Current Assets Noncurrent content assets, net PPE, Net Other Noncurrent Assets Total Assets 897,242 411,398 1,897,242 1,411,398 5,151,186 4,310,934 748,466 536,245 8,694,135 6,669,974 14,960,95410,371,055 418,281 319,404 901,030 652,309 24,974.400 18,012.742 А Netflix Inc 2 Consolidated Statement of Earnings 3 4 Revenues S...

  • 2 62.8 MEAN = 3 71.9 MEDIAN = 4 69.6 MODE= 5 74.1 RANGE = 6 66.6 MIN. = 7 76.5 MAX.= 8 66.4 STDEV. = 9 73.1 MY HEIGHT =67.00 10 71.6 Z SCORE FOR MY HEIGHT = 11 69.3 12 64.0 13...

    2 62.8 MEAN = 3 71.9 MEDIAN = 4 69.6 MODE= 5 74.1 RANGE = 6 66.6 MIN. = 7 76.5 MAX.= 8 66.4 STDEV. = 9 73.1 MY HEIGHT =67.00 10 71.6 Z SCORE FOR MY HEIGHT = 11 69.3 12 64.0 13 70.9 14 62.2 15 63.3 16 67.7 17 65.2 18 64.2 19 69.4 20 71.7 21 64.6 22 69.0 23 71.3 24 69.1 25 71.6 26 75.9 27 66.2 28 67.4 29 64.6 30 69.6 31...

  • 1. Consider a call option selling for $ 4 in which the exercise price is $50....

    1. Consider a call option selling for $ 4 in which the exercise price is $50. A) Determine the value at expiration and the profit for a buyer under the following outcomes: i. The price of the underlying at expiration is $55 ii. The price of the underlying at expiration is $51 iii. The price of the underlying at expiration is $48 B) Determine the value at expiration and the profit for a seller under the following outcomes: i. The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT