Question
For the stock that corresponds to your Group, select an option expiry date among the available ones in the market so that > 0.5 years.
For the stock that corresponds to your Group, select an option expiry date among the available ones in the market so that > 0.5 years. Given the spot price of the stock ($), select three strike prices *,H and S near the money such that * < H < S 6.
Given the premiums / and / ( = 1,2,3) that correspond to the options with strike prices *,H and S that have been already calculated, built the following trading strategies and discuss their suitability: - Option (H) and underlying asset. i) Covered Call and ii) Protective Put - Multiple options (*,S) of the same type. i) Bull Spread with Calls and ii) Bear Spread with Puts - Combinations. i) Strip (H) and Butterfly Spread (*,H,S)
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