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Consider the following price quotes for stock options on Google on June 15, 2010. Assume that the stock is quoted as $497.07 on the bid,
Consider the following price quotes for stock options on Google on June 15, 2010. Assume that the stock is quoted as $497.07 on the bid, and $497.25 on the offer. Can you tell your friends about the possible profit/loss consequences of your option trading today if the stock price moves up to $550 in September? Most importantly, can you draw a net profit diagram for a long position in calls, a short position in calls, a long position in puts, a short position in puts
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