Question
Create a payout table and payout chart for the Iron Condor option strategy for Ford Motor Company. Spot price for Ford is $9.45. Iron Condor
Create a payout table and payout chart for the Iron Condor option strategy for Ford Motor Company. Spot price for Ford is $9.45. Iron Condor spread involves holding a bull put spread and bear call spread: Investor would sell one out-of-the money put with strike price (K1) and buy out of-of-the-money put with a lower strike price (K2). Investor would also sell one out-of-the-money call with a strike price (K3) and buy one out-of-the-money call with a higher strike price (K4). Information for the options with maturity 03/19/2021:
Strike | Option contract price | |
Put | $5.00 | $0.06 |
Put | $8.00 | $0.29 |
Call | $11.00 | $0.35 |
Call | $15.00 | $0.09 |
Each contract is for 100 shares. Create in Excel a payout/profit table and chart for the Iron Condor strategy.
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