Question
1. The Relationship between the Option Price (premium) and the Strike - In this question you will investigate how the price of a stock option
1. The Relationship between the Option Price (premium) and the Strike - In this question you will investigate how the price of a stock option is affected by the Strike (K), while holding all other factors constant. You will investigate the relationship for both calls and puts.
On any day of your choice, select a company and obtain the prices of both CALLS and PUTS for 5 or more strikes above the current stock price, and 5 or more strikes below the current stock price for the same expiration month (use either the monthly option for January 2023 or February 2023). Please ensure that there is a price for all the strikes that you choose, i.e., DO NOT choose strikes that have a price of less than $0.05. You may obtain the prices from Yahoo.Finance, cboe.com, stocktrak.com, or other sources. Plot on the same graph the relationship between the Call price and the Strike and the relationship between the Put price and the Strike. Please label your graph clearly. Include both your table and your graph with your report. Please report the stock price at the time you download the data. Comment on your graph.
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