Question
Complete the two columns of payoffs (without premium and adjusted for premium) and draw a payoff diagram (adjusted for premium) for each of the following
Complete the two columns of payoffs (without premium and adjusted for premium) and draw a payoff diagram (adjusted for premium) for each of the following options positions.
1. Buying (or going long) a call on AAPL stock expiring in 3 months with a strike of $175. The premium is $ 5.
| Spot price of AAPL in 3 months | Option payoff without premium | Option payoff adjusted for premium |
| $160 | ||
| $165 | ||
| $170 | ||
| $175 | ||
| $180 |
2. Buying (or going long) a put on AAPL stock expiring in 3 months with a strike of $175. The premium is $10.
| Spot price of AAPL in 3 months | Option payoff without premium | Option payoff adjusted for premium |
| $160 | ||
| $165 | ||
| $170 | ||
| $175 | ||
| $180 |
3. Selling (or shorting) a put on AAPL stock expiring in 3 months with a strike of $175. The premium is $10.
| Spot price of AAPL in 3 months | Option payoff without premium | Option payoff adjusted for premium |
| $160 | ||
| $165 | ||
| $170 | ||
| $175 | ||
| $180 |
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Weathering The Storm A Quick Guide To Safeguarding Your Finances During Economic Recession
Authors: Liam Wilhelm
1st Edition
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