Evaluate the strategies below in terms of their profit and stock price relationships at expiration. In your
Question:
Evaluate the strategies below in terms of their profit and stock price relationships at expiration. In your evaluation, include a profit table that breaks down each strategy and identify the name of the strategy. Assume each stock position has 100 shares and each option contract represents 100 shares of stock:
a. The short sale of XYX stock at \(\$ 60\) per share and the purchase of two XYZ March 60 call contracts at \(\$ 3\) per call. Evaluate at expiration stock prices of \(40,45,50,54,60,66,70\), and 80.
b. The purchase of \(A B C\) stock at \(\$ 75\) per share and the sale of an XYZ December 70 call contract at \(\$ 8\). Evaluate at expiration stock prices of 60 , \(65,67,70,74,75,80,85\), and 90.
c. The purchase of 100 shares of XYZ stock at \(\$ 39\) per share and the sale of two XYZ October 40 call contracts at \(\$ 6\). Evaluate at expiration stock prices of 20, 27, 35, 40, 45, 53, and 60.
d. The purchase of an XYZ September 50 call contract at \(\$ 12\) and the sale of an XYZ September 60 call contract at \(\$ 6\). Evaluate at expiration stock prices of \(40,45,50,55,56,60,65\), and 70.
e. The purchase of one XYZ July 50 call contract at \(\$ 12\), the sale of two July 60 call contracts at \(\$ 6\), and the purchase of one XYZ July 70 call contract at \(\$ 3\). Evaluate at expiration stock prices of \(40,50,53,56,60,64,67,70\), and 80.
f. The purchase of one XYZ September 50 call contract at \(\$ 12\) and the sale of two XYZ 6o September call contracts at \(\$ 5\). Evaluate at expiration stock prices of \(40,45,50,52,55,60,65,68,70\), and 75.
g. The purchase of XYZ stock at \(\$ 35\) per share and the purchase of an XYZ September 35 put contract for \(\$ 3\). Evaluate at expiration stock prices of \(20,25,30,35,38,40,45\), and 50.
h. The purchase of an XYZ July 70 call contract at \(\$ 3\) and the purchase of an XYZ July 70 put contract at \(\$ 2\). Evaluate at expiration stock prices of 50 , \(60,65,70,75,80\), and90.
i. The sale of an XYZ June 65 call contract at \(\$ 4\) and the sale of an XYZ June 65 put contract at \(\$ 3\). Evaluate at expiration stock prices of \(50,55,58,60\), \(65,70,72,75\), and 80.
j. The purchase of an XYZ 40 call contract at \(\$ 3\) and the purchase of two XYZ 40 put contracts at \(\$ 2\) each. Evaluate at expiration stock prices of 25, \(30,35,36.5,40,45,47,50\), and 55.
k. The sale of two \(40 \mathrm{XYZ}\) call contracts at \(\$ 3\) each and the sale of one \(\mathrm{XYZ}\) 40 put contract at \(\$ 2\). Evaluate at expiration stock prices of \(20,25,30,32\), \(35,40,44,45\), and 50 .1.
The purchase of an XYZ 40 call contract at \(\$ 3\) and the purchase of an \(X Y Z\) 35 put contract at \(\$ 3\). Evaluate at expiration stock prices of \(20,25,29,30\), \(35,40,45,46,50\), and 55. \(\mathrm{m}\). The sale of an XYZ 70 call contract at \(\$ 4\) and the sale of an XYZ 60 put contract at \(\$ 3\). Evaluate at expiration stock prices of \(40,50,53,57,60,65\), \(70,73,77,80\), and 90.
n. The sale of an XYZ 60 put contract at \(\$ 2\) and the purchase of an XYZ 70 put contract at \(\$ 7\), when \(X Y Z\) stock is trading at 65 . Evaluate at expiration stock prices of \(50,55,60,65,70,80\), and 90 .
o. The sale of an XYZ 40 put contract at \(\$ 3\) and the purchase of an \(\mathrm{XYZ} 40\) call contract at \(\$ 3\). Evaluate at expiration stock prices of \(30,35,40,45\), and 50 .
p. The purchase of an XYZ 50 put contract at \(\$ 2\) and the sale of \(\mathrm{XYZ} 60\) call contract at \\($1,\) when XYZ stock is trading at 53.
Evaluate at expiration stock prices of \(40,45,49,50,55,60,65\), and 70.
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