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PLEASE ANSWER I REALLY NEED HELP Graph the value of your portfolio as a function of the relevant stock price. Show ALL your work and
PLEASE ANSWER I REALLY NEED HELP Graph the value of your portfolio as a function of the relevant stock price. Show ALL your work and use EXCEL for graphs (please display the formulas used once you're done) For each graph, graph for stock prices between 50 and 80 with 50 data points ( Ex 50.5, 51, 51.5, 52 etc). Assume today is the last day for exercising your options.
2) You are short a call at 60, and long a put at 75. EXAMPLE ON WHAT IT SHOULD LOOK LIKE WHEN COMPLETED 2) You are short a call at 80, and long a put at 70.
2) 70 My explanation for Q2 Vote 20 Value of Short Call: K = 80; strike price S = share price min(80 - S): applies up until and after the exercise price of 80 19 18 80 min(K-S) max(K-s) 80-S 70-S Share Varss Vafle 50 0 20 51 0 19 52 0 18 53 0 17 54 0 16 55 0 15 56 0 14 57 0 13 58 0 12 59 0 11 60 0 10 17 16 15 Stock Price Portfolio Value 50 20 51 19 52 18 53 17 54 16 55 15 56 14 57 13 58 12 59 11 60 10 Value of Long Put: K = 70; strike price S = share price max (70 - S): applies up until the exercise price of 70 14 13 12 11 Value of Portfolio (Portfolio Value): The sum of both the short call + long put. 10 61 0 9 61 62 9 8 62 0 8 63 0 7 7 6 9 8 7 6 5 4 63 64 Question #2 64 0 6 5 25 65 66 0 0 5 4 4 20 67 0 3 3 2 15 0 68 69 2 1 3 2 1 10 0 1 70 0 0 0 Portfolio Value 0 71 0 0 0 0 0 0 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 -5 72 73 0 0 0 0 0 0 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 -10 74 0 0 -15 0 0 0 0 75 76 Stock Price 0 0 0 0 0 0 0 0 0 0 0 77 78 79 80 0 0 0 0 0 81 0 0 -1 -2 -1 -2 -1 82 0 -2Step by Step Solution
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