PDQ stock price:102

Riskless interest rate (simple interest, i.e., the Annual Percentage Rate):8.00% Option maturity:3 months

Volatility:0.30

Options are all European.

An option is for 1 share.Fractional shares and fractional options can be traded if you want to.

Options:StrikeCall priceCall deltaCall GammaPut pricePut deltaPut gamma

9511.750.02082 1/2-.250.0208

1008.630.02474-.370.0247

1056.500.02618-.500.0261

17.Consider the following position:Long 200 105 strike calls and Short 100 95 strike calls.Draw the payoff diagram, indicating the best and worst possible outcomes and the breakeven point or points.

(Show the total profit or loss in the diagram, i.e., the payoff minus the initial cost.)

A few of the many possible alternative positions for this question:

Long 100 of the 105 strike puts and Short 200 of the 95 strike puts

Long 100 95 strike calls and Short 100 of the 100 strike calls

Long 100 of the 105 strike calls and Short 100 of the 95 strike put