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Option Trading Strategies. Please answer the 2 attached files. I need answers in Excel File and findings report in Word File (2 Files). Thank you.

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Option Trading Strategies. Please answer the 2 attached files. I need answers in Excel File and findings report in Word File (2 Files). Thank you.

image text in transcribed Option Trading Strategies The homework requires you to work in Excel with the provided spreadsheet. Be sure to fill in the yellow boxes in the Excel file. In addition, type up a report in Word with an introduction (description of the option trading Strategies), findings (answer assignment questions, plots, etc.), and conclusion (summary). Submit both your Word report and Excel file. Answer each question A, B, C, D, E, F, G, and H. Part 1: Bull Spread A) Consider buying a call option with a strike of $30 and a selling call option with strike of $40. Fill in the table for the payoffs of the bull spread. B) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bull spread. Label the axes and chart title. Part 2: Bear Spread C) Consider selling a call option with a strike of $30 and buying a call option with a strike of $40. Fill in the table for the payoffs of the bear spread. D) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bear spread. Label the axes and chart title. Part 3: Box Spread E) Consider buying a call option with a strike of $30 and selling a put option with a strike of $30. Consider buying a put option with a strike of $40 and selling a call option with a strike of $40. Fill in the table for the payoffs of the box spread. F) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the box. Label the axes and chart title. Part 4: Straddle G) Consider buying a call and a put option, both with a strike price of $30 and the same expiration. Fill in the table for the payoffs of the straddle. H) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the straddle. Label the axes and chart title. In the Word report, for each option strategy: 1) Describe the relation between the payoff and stock price. 2) Describe why the strategy would be undertaken. 3) Under what circumstances will the strategy have a beneficial payoff. Option Trading Strategies Last Name First Name A) Bull Spread Payof K1 = K2 = Stock Price (ST) Total Payof $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 B) Bull Spread Plot C) Bear Spread Payof K1 = K2 = Stock Price (ST) Total Payof $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 D) Bear Spread Plot E) Box Spread Payof Call option K1 = K2 = Stock Price (ST) Total Payof $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 F) Box Spread Plot Put option K1 = K2 = G) Straddle Payof K1 = K2 = Stock Price (ST) Total Payof $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 H) Straddle Plot

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