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Q2. (option strategies) Below is a list of option premiums with different strike prices as of October 31,2023 (today). The options mature on November 17,
Q2. (option strategies) Below is a list of option premiums with different strike prices as of October 31,2023 ("today"). The options mature on November 17, 2023 (maturity T=17 days/365 days), and the underlying asset is Amazon's stock. You may use the "Price" column as option premiums and ignore the bid-ask spread. The current stock price is 127.7 and we assume the stock does not pay dividends. The risk-free interest rate is 2% p.a., continuously compounded. (a) Find out today's cost of strategy A: (b) What is the stock price of Amazon such that strategy A is break-even? (c) Find out today's cost of strategy B: (d) Find out today's cost of strategy C: (e) Find out today's cost of strategy D
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