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7. On 1.1.19 Jonathan wrote a call option on Walmart stock with a strike of 105, expiring in March. He also wrote a put option
7. On 1.1.19 Jonathan wrote a call option on Walmart stock with a strike of 105, expiring in March. He also wrote a put option on the same stock with similar maturity and a strike of 100. Jonathan received $4.20 for the call option and $2.61 for the put. a. Fill out the following payoff table: S(T) 105 Write put @ 100 Total b. Graph the payoff as function of the underlying stock price at expiration. c. What is the profit from the portfolio if the stock at expiration is trading at $103? At $110? d. What are the breakeven prices for Jonathan's portfolio? e. What view on the underlying stock does this strategy reflect
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