Question
I would like a spread sheet and graph that provides a payoff profile at expiration. Bonus points if you can determine what the implied yield
I would like a spread sheet and graph that provides a payoff profile at expiration. Bonus points if you can determine what the implied yield is! We will use SPX Index options as the underlying investments. Reference price on SPX was 3405.25
A)You sell 100 Call contracts of the Oct 16 2020 expiration and 2500 strike at 904.25. . There is a multiplier on these options of 100. So to get the value you take the amount of contracts (100) x the multiplier (100) x the price 904.25 to get 9,042,500 of notional dollars. This is a creditUse the same methodology on next 3
B)You sell 100 Put contracts of the Oct 16 2020 expiration and 3500 strike at 131.60This is a credit
C)You buy 100 Put Contracts of the Oct 16 2020 expiration 2500 strike at 2.70This is a debit
D)You Buy 100 Call contracts of the Oct 16 2020 expiration 3500 strike at 34.4this is a debit
Assuming you did the trades today you would receive the net credit tomorrow 9/17
When the trades expire 10/16 you will owe the money back on next biz day10/19
The above trade is selling the box---effectively borrowing money
we would like to see a graph that shows at expiration the value of the sum of all options
Next we would like to see in a spread sheet the value of each individual leg of the options as well as the sum of all 4 combined versus the corresponding closing price on SPX. (at expiration) Please run SPX at 200 point intervals from 1000 to 4000
We are looking for how you would be able to process and show the output.
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