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Hi expert, Hi expert, There are two questions relating to 2-for-1 put spread and backspread. We need to calculate Profit and Loss for a range
Hi expert,
Hi expert,
There are two questions relating to 2-for-1 put spread and backspread. We need to calculate Profit and Loss for a range of stock prices. I would request you to answer P&L for only one stock price for part B only(back spread). Let's suppose the one stock price which you answer is $55
Please include formula while answering it.
Thanks
The following table provides information on four European put options writtern on ALCO stock. Exercise Price $30 $%35 $40 45 Expiration Date 15 Sep 2018 15 Sep 2018 15 Sep 2018 15 Sep 2018 Option Price $1.00 $2.60 $5.20 8.70 Option Ignore any transaction costs other than the initial cost of buying or selling the options. exi Required (a) Complete Template F showing the profit and loss (P&L) from a 2-for-1 ratio put spread constructed from options A and B for stock prices between $20 and $50 in $1 increments. Create a P&L chart in EXCEL showing the P&L on each option position and the overall strategy. (6 marks) (b) Complete Template G showing the profit & loss from (P&L) a 2-for-1 ratio put backspread constructed from options C and D for stock price:s between $25 and $55 in $1 increments. Create a P&L chart in EXCEL showing the P&L on each option position and the overall strategyStep by Step Solution
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