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In December, you believe that EASY Company, which is currently trading at $500 per share, will not increase or decrease much over the next month
In December, you believe that EASY Company, which is currently trading at $500 per share, will not increase or decrease much over the next month or two. You sell 10 EASY January 515 Calls for a premium of $3.50 and at the same time you buy 10 EASY January 520 Calls at a premium of $1.50. In addition, you sell 10 EASY January 485 Puts for a premium of $5.00 and at the same time you buy 10 EASY January 480 Puts for a premium of $2.25. Determine your gain or loss if
- the stock price increase to $512 per share at expiration
- the stock price decrease to $489 per share at expiration
- the stock price increase to $540 per share at expiration
- the stock price decrease to $470 per share at expiration
- the stock price increase to $518 per share at expiration
- the stock price decrease to $482 per share at expiration
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