Question
Considering the following option strategy, please fill out the payoff table and draw the net profit graph in a V-ST space [i.e., vertical line is
Considering the following option strategy, please fill out the payoff table and draw the net profit graph in a V-ST space [i.e., vertical line is value (V), horizontal line is stock price (ST)]. ST Stands for the spot stock price at the expiration date T
| ST <=40 | 40< ST <=70 | ST >70 | |
| Buy 1 share of stock at $50 | |||
| Buy 1 put with X1=$40, P=$6 | |||
| Write 1 call with X2=$70 C=$8 | |||
| Total payoff | |||
| Total net payoff |
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Rich Dads Increase Your Financial IQ Get Smarter With Your Money
Authors: Robert T. Kiyosaki
1st Edition
1612680658, 978-1612680651
