Question
2.Suppose that you own 100 shares of the company in which you just wrote the option in the previous question. If you purchased these shares
2.Suppose that you own 100 shares of the company in which you just wrote the option in the previous question. If you purchased these shares at $50 what will your net profit/loss position look like now over, say share prices from $40 to $80? Construct a table and graph the situation. 3. Calculate the net position from a single strategy that consists of one contract a, one contract b, and two contract c. Here are the contracts specification: Contract a: Purchase of a call with a strike price of $105 and a premium of $3. Contract b: Purchase of a put with a strike price of $95 and a premium of $7. Contract c: Writing a call with a strike price of $100 and a premium of $4.
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