Q1 Belo is option chain on Suncor stock with expiration on Jan 19, 2019. Suncor stock closed at $44.70 on Dec 23, 2017. Explain how you can set up a butterfly spread with call options with K = $46. K-548 and K =$50. Provide an example. At what price will the strategy yield maximum profit?At what price(s) does the strategy yield maximum losses? Symbols SU Jan 32.00 Call$13.20 32SU Jan 32.00 Put$1.11 SU Jan 34.00 Cail$11.4534SU Jan 34.00 Put $0.90 SUJ Jan 36.00 Cal 9.60 36SI: Jan 36.00 Put $1.42 SU Jan 38.00 Call %7.9538SUlan 38.00 Put $1.82 SU Jan 40.00 Cali %6.65 40SU Jan 40.00 Pt$2.29 SUU Jan 42.00 Cal 5.30 42S Jan 42.00 Put$3.05 SU Jan 44.00 Call $4.1044 SU Jan 44.00 Put$3.95 SU Jan 46.00 Cal $3.1046SU lan 46.00 Put $5.00 SU Jan 48.00 Call $2.3248 SU Jan 50.00 Cal $1.73 50SU Jan 50.00 Put$7.45 Source: CIBC Strike Symbols Last sjan 48.00 Put $6.25 Q2. Choose a company which has executive options outstanding and value these options From the annual report use data on: number of stock options outstanding average life average exercise prmce ditidend yield volatility risk-free rate information should be updated to reflect most recent market conditions. ignment 1. Show all Note: banks have changed their options compensation policies following the 2008 crisis, so annual reports of fims in other industries. You can use risk-free rate from ass details of your calculations by hand. you may want to examine Q1 Belo is option chain on Suncor stock with expiration on Jan 19, 2019. Suncor stock closed at $44.70 on Dec 23, 2017. Explain how you can set up a butterfly spread with call options with K = $46. K-548 and K =$50. Provide an example. At what price will the strategy yield maximum profit?At what price(s) does the strategy yield maximum losses? Symbols SU Jan 32.00 Call$13.20 32SU Jan 32.00 Put$1.11 SU Jan 34.00 Cail$11.4534SU Jan 34.00 Put $0.90 SUJ Jan 36.00 Cal 9.60 36SI: Jan 36.00 Put $1.42 SU Jan 38.00 Call %7.9538SUlan 38.00 Put $1.82 SU Jan 40.00 Cali %6.65 40SU Jan 40.00 Pt$2.29 SUU Jan 42.00 Cal 5.30 42S Jan 42.00 Put$3.05 SU Jan 44.00 Call $4.1044 SU Jan 44.00 Put$3.95 SU Jan 46.00 Cal $3.1046SU lan 46.00 Put $5.00 SU Jan 48.00 Call $2.3248 SU Jan 50.00 Cal $1.73 50SU Jan 50.00 Put$7.45 Source: CIBC Strike Symbols Last sjan 48.00 Put $6.25 Q2. Choose a company which has executive options outstanding and value these options From the annual report use data on: number of stock options outstanding average life average exercise prmce ditidend yield volatility risk-free rate information should be updated to reflect most recent market conditions. ignment 1. Show all Note: banks have changed their options compensation policies following the 2008 crisis, so annual reports of fims in other industries. You can use risk-free rate from ass details of your calculations by hand. you may want to examine
