Draw a pay-off table and a diagram for each of the following strategies. Show maximum profit, maximum loss, and breakeven point(s). Use the suitable tables provided below.

Q. LongStraddle (10 marks)

LongATMCallandATMPuthavethesameunderlyingasset andsamematurity. Long 11100 Call @ Rs. 287.75 and Long 11100 Put @ Rs. 273.3. LongStrangle

LongOTMCallandOTMPuthavingthesameunderlyingassetandsamematurity Long 11200 Call @ Rs. 238.75 and Long 11000 Put @ Rs. 233

Table 1: Nifty Option Closing Prices in Rupees as of March 02, 2020

CallPremium	StrikePrice	PutPremium
481.85	10800	174.15
413.15	10900	200.80
347.95	11000	233.00
287.75	11100	273.30
238.75	11200	314.10
192.65	11300	360.80
149.95	11400	421.45

Table 2: Pay-off Table for Long Straddle

SpotPrice	TotalPremium	CallPay-off	PutPay-off	Long Straddle NetProfit/Loss
10000	-561.05	0	1100	538.95
10100	-561.05	0	1000	438.95
10200	-561.05	0	900	338.95
10300	-561.05	0	800	238.95
10400	-561.05	0	700	138.95
10500	-561.05	0	600	38.95
10600	-561.05	0	500	-61.05
10700	-561.05	0	400	-161.05
10800	-561.05	0	300	-261.05
10900	-561.05	0	200	-361.05
11000	-561.05	0	100	-461.05
11100	-561.05	0	0	-561.05
11200	-561.05	100	0	-461.05
11300	-561.05	200	0	-361.05
11400	-561.05	300	0	-261.05
11500	-561.05	400	0	-161.05
11600	-561.05	500	0	-61.05
11700	-561.05	600	0	38.95
11800	-561.05	700	0	138.95
11900	-561.05	800	0	238.95
12000	-561.05	900	0	338.95
12100	-561.05	1000	0	438.95
12200	-561.05	1100	0	538.95