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Question 12: Given the following information (same underline asset, same maturity) you decide to purchase a put option with x=30 and a call with x=50.
Question 12: Given the following information (same underline asset, same maturity) you decide to purchase a put option with x=30 and a call with x=50. At the same time, you also decide to write a put option with x=40 and a call option with x=40. Option Put Put Call Call Call Strike $30 $40 $30 $40 $50 Market Price $2 $5 $13 $6 $3 a. Build a profit table and diagram for your strategy b. Replicate the same strategy using only Call options (provide the strategy that gives the same result). Question 12: Given the following information (same underline asset, same maturity) you decide to purchase a put option with x=30 and a call with x=50. At the same time, you also decide to write a put option with x=40 and a call option with x=40. Option Put Put Call Call Call Strike $30 $40 $30 $40 $50 Market Price $2 $5 $13 $6 $3 a. Build a profit table and diagram for your strategy b. Replicate the same strategy using only Call options (provide the strategy that gives the same result)
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