Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Download daily adjusted close prices for TESLA between 12/10/2020 and 12/09/2021. (TICKER:TSLA). Calculate daily returns, volatility and annualized volatility. Calculate the prices of Call options

Download daily adjusted close prices for TESLA between 12/10/2020 and 12/09/2021. (TICKER:TSLA).

  1. Calculate daily returns, volatility and annualized volatility.
  2. Calculate the prices of Call options on TSLA that expires on 02/18/2022 with strike prices of $1000, 1100$ and $1200. Assume youre calculating price on 12/09/2021 and TSLA trades at $1004 on that date.
  3. Calculate prices of Put options for the same strike prices and maturity using Put-Call Parity equation.
  4. After you calculated the price based on your assumptions, you realized that the Call options trade at $123, 82$ and $53, respectively. Calculate the implied volatilities for each strike price using goal seek.
  5. You decided to build a reverse butterfly option strategy with writing a call at $1000, buying two calls at $1100 and writing one call at $1200. Using your calculated option prices, calculate total profits for stock prices between $500 and $1500 and draw a total payout chart.

Risk Free Rate is 0.85%

Please use excel sheet to do it and provide the formula inside the excel , thanks!!!!!!1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

7th Edition

0073368717, 978-0073368719

More Books

Students also viewed these Finance questions

Question

=+What category does this metric represent?

Answered: 1 week ago