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(a) Using data tables, construct a model that shows the value of the portfolio with options and without options for a share price in six
(a) Using data tables, construct a model that shows the value of the portfolio with options and without options for a share price in six months between $15 and $35 per share in increments of $1.00. Constructing data tables using Excel is a quick way to calculate expressions by substituting different values for one of the terms within a formula. Before using the data table option, a spreadsheet of values and formulas must be constructed. Open an Excel spreadsheet and format it as below. First place the known values in the spreadsheet. The exercise price is given to be $27. At the end of 6 months, the price per share is $23.50. A total of 310 shares were purchased at $33 per share. In addition, 130 six-month European put options were purchased for $1 each. Place these values in the spreadsheet below. A B European Put Option 1 2 3 Parameters 4 Cost of Put Option $ 5 Exercise Price $ 6 Time (months) 6 7 8 Price per Share $ 9 Share Price - End of 6 Months $ 10 11 Model 12 Number of Shares Purchased 13 Number of Puts Purchased
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