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Graph profit plots. Analyze and summerize your answers. Short Straddle @ $85 Straddle: An option strategy with which the investor holds a position in both
Graph profit plots. Analyze and summerize your answers. Short Straddle @ \$85 Straddle: An option strategy with which the investor holds a position in both a call and put with same strike and expiration date. \begin{tabular}{|c|c|c|c|c|c|} \hline & Call & Put & & \\ \hline Strike Price & 85.00 & 85.00 & & \\ \hline Option Price & 28.25 & 0.25 & & \\ \hline Interest rate & 0.05 & & & \\ \hline & & & & \\ \hline Stock Price & Short Call & Short Put & Total Payoff & Profit \\ \hline 85.00 & & & & \\ \hline 90.00 & & & & \\ \hline 95.00 & & & & \\ \hline 100.00 & & & & \\ \hline 105.00 & & & & \\ \hline 110.00 & & & & \\ \hline 115.00 & & & & \\ \hline 120.00 & & & & \\ \hline 125.00 & & & & \\ \hline & & & & \\ \hline \end{tabular} Butterfly Spread with long call strike prices of \$95 and \$125 Butterfly Spread: Buying a call option with a relatively low strike price K1, buying a call option with a relatively high strike price K3, and selling two call options with a strike price K2 half way between two K1 and K3. \begin{tabular}{|c|c|c|c|c|c||c||} \hline & & & & \\ \hline & Call (K1) & Call (K2) & Call (K3) & & \\ \hline Strike Price & 95.00 & 110.00 & 125.00 & & \\ \hline Option Price & 20.13 & 7.63 & 2.31 & & \\ \hline interest rate & 0.05 & & & & \\ \hline & & & & \\ \hline Stock Price & Long Call (K1) & Long Call(K3) & Short 2 Calls(K2) & Total Payoff & Profit & \\ \hline 85.00 & & & & & \\ \hline 90.00 & & & & & \\ \hline 95.00 & & & & & \\ \hline 100.00 & & & & & \\ \hline 105.00 & & & & & \\ \hline 110.00 & & & & & \\ \hline 115.00 & & & & & \\ \hline 120.00 & & & & & \\ \hline 125.00 & & & & & \\ \hline \end{tabular}
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