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Consider an options trader who sets up a condor trading strategy on a stock. The option trader buys a call option with a strike price
Consider an options trader who sets up a condor trading strategy on a stock. The option trader buys a call option with a strike price of $25, sells a call option with a strike price of $30, sells a call option with a strike price of $40, and buys a call option with a strike price of $45. Complete the table below with the correct formulas to show the profit/loss for different values of the stock price at the expiration of the options. Strike price Option price $25 $14.05 2 $30 $9.70 3 $40 $3.15 4 $45 $1.38 1 -$14.05 Call option 2 3 $9.70 $3.15 4 -$1.38 Stock price $0 $1 $2 Profit/Loss $2.58 $0.00 $0.00 $0.00
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