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1.Given below the price movement of a company for a period of three months. Based on the price movements you are going to forecast what
1.Given below the price movement of a company for a period of three months. Based on the price movements you are going to forecast what could be the price at the end of the fourth month.
Depending on your forecast you will form one option strategy for the company.
The available strike prices and their respective premiums are given below for the company.
Find the strategy, Option type, Long/short, the strike prices chosen for the strategy, the maximum profit potential and the max loss potential for the strategy.
700.00 650.00 600.00 mm 550.00 Call Premium 73 65 56 53 Strike 620 630 640 650 Put Premium 2 4 9 11 41 660 670 13 17 35 32 20 680 690 26 25 22 30 18 36 43 14 12 9 700 710 720 730 740 750 50 55 63 7 6 760 72 5 780 90Step by Step Solution
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