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.
Homework Answers
Payoff Long call=max(0, Stock price-135) will be positive when stock price is more than $135
Payoff on short put shall be: -max(0,115-Stock price) will be negative when the stock price is less than $115
| Stock price | Payoff Long Call | Payoff short put | Total Payoff | |
| $ 100.00 | $ - | $ (15.00) | $ (15.00) | |
| $ 101.00 | $ - | $ (14.00) | $ (14.00) | |
| $ 102.00 | $ - | $ (13.00) | $ (13.00) | |
| $ 103.00 | $ - | $ (12.00) | $ (12.00) | |
| $ 104.00 | $ - | $ (11.00) | $ (11.00) | |
| $ 105.00 | $ - | $ (10.00) | $ (10.00) | |
| $ 106.00 | $ - | $ (9.00) | $ (9.00) | |
| $ 107.00 | $ - | $ (8.00) | $ (8.00) | |
| $ 108.00 | $ - | $ (7.00) | $ (7.00) | |
| $ 109.00 | $ - | $ (6.00) | $ (6.00) | |
| $ 110.00 | $ - | $ (5.00) | $ (5.00) | |
| $ 111.00 | $ - | $ (4.00) | $ (4.00) | |
| $ 112.00 | $ - | $ (3.00) | $ (3.00) | |
| $ 113.00 | $ - | $ (2.00) | $ (2.00) | |
| $ 114.00 | $ - | $ (1.00) | $ (1.00) | |
| $ 115.00 | $ - | $ - | $ - | |
| $ 116.00 | $ - | $ - | ||
| $ 117.00 | $ - | $ - | ||
| $ 118.00 | $ - | $ - | ||
| $ 119.00 | $ - | $ - | ||
| $ 120.00 | $ - | $ - | ||
| $ 121.00 | $ - | $ - | ||
| $ 122.00 | $ - | $ - | ||
| $ 123.00 | $ - | $ - | ||
| $ 124.00 | $ - | $ - | ||
| $ 125.00 | $ - | $ - | ||
| $ 126.00 | $ - | $ - | ||
| $ 127.00 | $ - | $ - | ||
| $ 128.00 | $ - | $ - | ||
| $ 129.00 | $ - | $ - | ||
| $ 130.00 | $ - | $ - | ||
| $ 131.00 | $ - | $ - | ||
| $ 132.00 | $ - | $ - | ||
| $ 133.00 | $ - | $ - | ||
| $ 134.00 | $ - | $ - | ||
| $ 135.00 | $ - | $ - | ||
| $ 136.00 | $ 1.00 | $ 1.00 | ||
| $ 137.00 | $ 2.00 | $ 2.00 | ||
| $ 138.00 | $ 3.00 | $ 3.00 | ||
| $ 139.00 | $ 4.00 | $ 4.00 | ||
| $ 140.00 | $ 5.00 | $ 5.00 | ||
| $ 141.00 | $ 6.00 | $ 6.00 | ||
| $ 142.00 | $ 7.00 | $ 7.00 | ||
| $ 143.00 | $ 8.00 | $ 8.00 | ||
| $ 144.00 | $ 9.00 | $ 9.00 | ||
| $ 145.00 | $ 10.00 | $ 10.00 | ||
| $ 146.00 | $ 11.00 | $ 11.00 | ||
| $ 147.00 | $ 12.00 | $ 12.00 | ||
| $ 148.00 | $ 13.00 | $ 13.00 | ||
| $ 149.00 | $ 14.00 | $ 14.00 | ||
| $ 150.00 | $ 15.00 | $ 15.00 | ||
| $ 151.00 | $ 16.00 | $ 16.00 | ||
| $ 152.00 | $ 17.00 | $ 17.00 | ||
| $ 153.00 | $ 18.00 | $ 18.00 | ||
| $ 154.00 | $ 19.00 | $ 19.00 | ||
| $ 155.00 | $ 20.00 | $ 20.00 | ||
| $ 156.00 | $ 21.00 | $ 21.00 | ||
| $ 157.00 | $ 22.00 | $ 22.00 | ||
| $ 158.00 | $ 23.00 | $ 23.00 | ||
| $ 159.00 | $ 24.00 | $ 24.00 | ||
| $ 160.00 | $ 25.00 | $ 25.00 | ||
Graph:
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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....
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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