Question
A trader takes the following trading strategy on Tesla options (European options): long a call at strike price $400; long a call at strike price
A trader takes the following trading strategy on Tesla options (European options): long a call at strike price $400; long a call at strike price $500; short two calls at strike price $450.
A) What is the name of this option strategy?
B) Suppose at the maturity, the terminal stock price is ST. Construct a table that shows the payoff for each position and total payoff from this option strategy, in different terminal stock price (ST) scenarios.
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Competing On Analytics The New Science Of Winning
Authors: Thomas H Davenport, Jeanne G Harris, Gary Loveman
1st Edition
1422103323, 9781422103326
