Question

For the calculations in Problems 6-10 use the following option quotations regarding the stock of Gilead. Gilead has been trading at $82.08. While graphs are quite valuable, and can help you solve the problem, you don't have to send them. For simplicity, all strategies will be done for 1 share each time (not a contract). Ask 2.35 2.72 3.3 Calls Bid 21-Jan-22 4 0| 21-Jan-22 37.5 21-Jan-22 35.1 21-Jan-22 34.35 21-Jan-22 32.45 21-Jan-22 30.55 21-Jan-22 28.8 21-Jan-22 26.65 21-Jan-22 26 21-Jan-22 23.85 21-Jan-22 2 2.3 21-Jan-22 20.75 21-Jan-22 19.45 21-Jan-22 18. 2 21-Jan-22 17 21-Jan-22 161 21-Jan-22 15.2 21-Jan-22 14.3 21-Jan-22 12.95 21-Jan-22 12.15 21-Jan-22 11.6 21-Jan-22 10.45 21-Jan-22 9.8 21-Jan-22 9.2 21-Jan-22 7.95 21-Jan-22 7.05 21-Jan-22 5.65 21-Jan-22 5.35 21-Jan-224.8 Ask 44.15 42 39.9 37.6 35.6 34 32.5 30.4 27 25.45 23.5 22.35 20.8 19.65 18.45 17.2 16.05 15.05 14.05 13.3 12.4 11.55 10.9 9.6 8.45 7.5 6.6 5.85 5.05 Root Strike GILD 40 GILD 42.5 GILD 45 GILD 47.5 GILD 50 GILD 52.5 GILD 55 GILDI 57.5 GILD 60 GILD 62.5 GILD 6 5 GILD 67.5 GILDI 70 GILD 72.5 GILD 75 GILD 7 7.5 GILDI 80 GILD 82.5 GILD 85 GILD 87.5 GILD 90 GILDI 92.5 GILD 95 GILD 100 GILD 105 GILD 1101 GILDI 115| GILD 120 GILD 125 Bid 1.6 1.73 2.15 3.1 3.7 4.4 5.15 5.9 6.7 7.75 8.75 9.75 9 12.2 13.5 14.95 16.2 17.75 19.3 21 22.55 24.4 26.05 29.6 33.3 37.2 41.7| 45.95 49.7 3.6 4.3 4.9 5.65 6.45 7.4 8.35 9.35 10.55 11.9 13 14.25 15.65 17.15 18.75 20.35 21.9 23.55 25.4 27.15 31 35.8 38.65 43.15 47.35 51.4

Answer 1

IF ANY QUERY, FEEL FREE TO ASK IN COMMENTS Solution Strategy Sell PUT (X=125) O<St<125 MIN(St-X,0) 125<st 0 Fees/premium premium received premium received Profit Function MIN(St-X,0) + premium received 0 + premium received