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Consider stock XYZ with a current price of $100. XYZ does not pay dividends. The following table provides you the call and put options information
Consider stock XYZ with a current price of $100. XYZ does not pay dividends. The following table provides you the call and put options information written on this stock. Long the call options with strike prices $90 and $110 and short two call options with strike price $100. Show the payoff and profit diagram. (The continuously compounded risk-free interest rate is 5%.)
This question has to be solved on paper then share (not solve in excel) only the diagram has to be created in excel and then share, diagram is mandatory.
Strike price Call price 90 14.63 100 6.80 110 2.17Step by Step Solution
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