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please please solve this problem urgently and perfectly. mention each part answer as you give. I'll give positive rating if you solve perfectly and urgently
please please solve this problem urgently and perfectly. mention each part answer as you give. I'll give positive rating if you solve perfectly and urgently and solve all parts of this question urgently and perfectly and also mention each part answer
Consider the following option strategy that shorts (sells/writes) a "Straddle" on the company Moderna (MRNA). A. Short one call option on MRNA with time to expiration T and strike price X1=$50. B. Short one put option on MRNA with time to expiration T and strike price X2=$50. (a) In a table such as the one below, fill out the payoffs of the components A and B of the short Straddle strategy listed above. Remember that payoffs do not take into account the cost of the options, while the net profit does. The top row of the table indicates five scenarios for the price of MRNA stock at the expiration time T. (b) Draw below a diagram containing: 1. the total payoff of the short Straddle strategy over the price of the MRNA stock at expiration T. 2. a dashed line that indicates (roughly) what the net profit of this strategy is compared to the total payoff. (c) Moderna is expected to release new results from the trial of their mRNA vaccine for treating skin cancer between today and the expiration time T. You don't know if the results will be good or bad, but you don't believe that the price of Moderna stock will move more than 10% up or down between now and time T from its current price, which is $50. The price of the Straddle is $7. Should you buy or sell the Straddle? Briefly explain why. (a) Tahle. create and fill in a tahle cuch ac the one helow in vonr work (b). Diagram: draw the diagram in your workStep by Step Solution
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