Question
Long/Short underlying position and a Call/Put position: FB is currently priced at $355 and the 137-day K = 340 call and put are priced $35
Long/Short underlying position and a Call/Put position:
FB is currently priced at $355 and the 137-day K = 340 call and put are priced $35 and $19.30, respectively.The annual continously compounded risk-free rate is 1.75%.
a) An investor sells FB short at $355 and buys a 137-day K = 340 call for $35.What is the P/L if NFLX closes at $360 at expiration?
b) An investor buys FB at $355 and buys a 137-day K = 340 put for $19.30.What is the P/L if NFLX closes at $360 at expiration?
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
