QUESTION 11 The current price of a stock is 582. The following options are available on the stock. All the options mature in one year. X-Strike Price. PaPremium A. Call Option. X-80. Price $4. B. Put Option. X=80. Price $3. C.Call Option. X-90. Price $2. D. Put Option. X=70. Price $1. Use the options above to construct a Long Straddle. Draw the profit line for your trading strategy. Include break-even prices) and the maximum gains and losses for your strategy. Discuss when it makes sense to use this strategy. If you are not able to submit the file to BB, email me a scan or picture of your answer within 10 minutes of the exam ending. I can see when the exam ends via the access log on BB Attach File Browse Local Files Browse Content Collection 7 points QUESTION 12 Consider the following trading strategy 00) Buy a put option with a maturity of one year and a strike price of 541 and a premium of $4. 2) Write a put option with a maturity of one year and a strike price of $36 and a premium of $2 This strategy is known as a spread. The annual risk free rate is 10%. Al option contracts in this question have the same underlying asset. The underlying asset currently has a price of $38. Plot the profit line for the spread. What is the breakoeven prices? When would you use this strategy Please scan or take a picture of your answer and upload it to Be If you are not able to submit the file to BB. email it to me take a picture or scan it) within 10 minutes of the examending. I can see when the examends from the access log on BB Attach File Beowww lolos Browse Canter Colection QUESTION 11 The current price of a stock is 582. The following options are available on the stock. All the options mature in one year. X-Strike Price. PaPremium A. Call Option. X-80. Price $4. B. Put Option. X=80. Price $3. C.Call Option. X-90. Price $2. D. Put Option. X=70. Price $1. Use the options above to construct a Long Straddle. Draw the profit line for your trading strategy. Include break-even prices) and the maximum gains and losses for your strategy. Discuss when it makes sense to use this strategy. If you are not able to submit the file to BB, email me a scan or picture of your answer within 10 minutes of the exam ending. I can see when the exam ends via the access log on BB Attach File Browse Local Files Browse Content Collection 7 points QUESTION 12 Consider the following trading strategy 00) Buy a put option with a maturity of one year and a strike price of 541 and a premium of $4. 2) Write a put option with a maturity of one year and a strike price of $36 and a premium of $2 This strategy is known as a spread. The annual risk free rate is 10%. Al option contracts in this question have the same underlying asset. The underlying asset currently has a price of $38. Plot the profit line for the spread. What is the breakoeven prices? When would you use this strategy Please scan or take a picture of your answer and upload it to Be If you are not able to submit the file to BB. email it to me take a picture or scan it) within 10 minutes of the examending. I can see when the examends from the access log on BB Attach File Beowww lolos Browse Canter Colection
