a. Plot the payoff and profit diagrams to a straddle position with an exercise (strike) price of $130. Assume the options are priced as they are in the Excel Application. b. Plot the payoff and profit diagrams to a spread position with exercise (strike) prices of $120 and $130. Assume the options are priced as they are in the Excel Application. Case Analysis Student Name: Course Name: Student ID: Course Number: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Use the Excel Applications model below to answer each question. The data for the payoff diagram is created. Use the Data Table Function. For help with the Data Table function go to Office Online Create the Payoff Diagram and post below ! Stock Prices Beginning Market Price Ending Market Price 116.5 130 Buying Options: Call Options Strike 110 120 130 140 Price 22.80 16.80 13.60 10.30 Payoff 20.00 10.00 0.00 0.00 Profit -2.80 -6.80 - 13.60 -10.30 Return % - 12.28% -40.48% - 100.00% - 100.00% % ATT Put Options Strike 110 120 130 140 Price 12.60 17.20 23.60 30.50 Payoff 0.00 0.00 0.00 10.00 Profit - 12.60 -17.20 -23.60 -20.50 Return % - 100.00% -100.00% - 100.00% -67.21% X 130 Straddle Ending Profit Stock Price -37.20 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 47 Straddle 110 120 130 140 Price 35.40 34.00 37.20 40.80 Payoff 20.00 10.00 0.00 10.00 Profit - 15.40 -24.00 -37.20 -30.80 Return % -43.50% -70.59% - 100.00% -75.49% Selling Options: Call Options Strike Price 22.80 Bullish Spread 6.80 110 120 130 140 16.80 Payoff -20 - 10 0 0 Profit 2.80 6.80 13.60 10.30 Return % 12.28% 40.48% 100.00% 100.00% 13.60 10.30 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Put Options Strike 110 120 130 140 Price 12.60 17.20 23.60 30.50 Payoff 0 0 0 10 Profit 12.60 17.20 23.60 40.50 Return % 100.00% 100.00% 100.00% 132.79% Ending Stock Price 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 Money Spread Price Payoff Profit Bullish Spread Cell Ref Cell Ref -6.80 13.60 6.80 Combined Profit 0.00 a. Plot the payoff and profit diagrams to a straddle position with an exercise (strike) price of $130. Assume the options are priced as they are in the Excel Application. b. Plot the payoff and profit diagrams to a spread position with exercise (strike) prices of $120 and $130. Assume the options are priced as they are in the Excel Application. Case Analysis Student Name: Course Name: Student ID: Course Number: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Use the Excel Applications model below to answer each question. The data for the payoff diagram is created. Use the Data Table Function. For help with the Data Table function go to Office Online Create the Payoff Diagram and post below ! Stock Prices Beginning Market Price Ending Market Price 116.5 130 Buying Options: Call Options Strike 110 120 130 140 Price 22.80 16.80 13.60 10.30 Payoff 20.00 10.00 0.00 0.00 Profit -2.80 -6.80 - 13.60 -10.30 Return % - 12.28% -40.48% - 100.00% - 100.00% % ATT Put Options Strike 110 120 130 140 Price 12.60 17.20 23.60 30.50 Payoff 0.00 0.00 0.00 10.00 Profit - 12.60 -17.20 -23.60 -20.50 Return % - 100.00% -100.00% - 100.00% -67.21% X 130 Straddle Ending Profit Stock Price -37.20 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 47 Straddle 110 120 130 140 Price 35.40 34.00 37.20 40.80 Payoff 20.00 10.00 0.00 10.00 Profit - 15.40 -24.00 -37.20 -30.80 Return % -43.50% -70.59% - 100.00% -75.49% Selling Options: Call Options Strike Price 22.80 Bullish Spread 6.80 110 120 130 140 16.80 Payoff -20 - 10 0 0 Profit 2.80 6.80 13.60 10.30 Return % 12.28% 40.48% 100.00% 100.00% 13.60 10.30 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Put Options Strike 110 120 130 140 Price 12.60 17.20 23.60 30.50 Payoff 0 0 0 10 Profit 12.60 17.20 23.60 40.50 Return % 100.00% 100.00% 100.00% 132.79% Ending Stock Price 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 Money Spread Price Payoff Profit Bullish Spread Cell Ref Cell Ref -6.80 13.60 6.80 Combined Profit 0.00