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As a well-known dealer in the financial broker in Malaysia, your VIP investor (client), Mr. Harry Potter is busy with his career and he only
As a well-known dealer in the financial broker in Malaysia, your VIP investor (client), Mr. Harry Potter is busy with his career and he only manage to trade in derivatives market using an online trading platform. From his online electronic trading platform, the stock market shows the selling price is RM100. You need to simplify all the option contracts with their respective option premium on a stock market as an underlying asset in the table below: Strike (RM) Call (RM) Put (RM) 95 15.60 1.90 100 7.40 5.00 105 3.30 10.60 Based on the information given: a) Construct the profit diagram for straddles. b) Draw the profit diagram for bull spread using the Put Option. c) Draw the profit diagram for Butterfly Spread for long position. As a well-known dealer in the financial broker in Malaysia, your VIP investor (client), Mr. Harry Potter is busy with his career and he only manage to trade in derivatives market using an online trading platform. From his online electronic trading platform, the stock market shows the selling price is RM100. You need to simplify all the option contracts with their respective option premium on a stock market as an underlying asset in the table below: Strike (RM) Call (RM) Put (RM) 95 15.60 1.90 100 7.40 5.00 105 3.30 10.60 Based on the information given: a) Construct the profit diagram for straddles. b) Draw the profit diagram for bull spread using the Put Option. c) Draw the profit diagram for Butterfly Spread for long position
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