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QUESTION 5 You form a collar by buying a put with an exercise price of X1 = $30 and a premium of P = $5,
QUESTION 5 You form a collar by buying a put with an exercise price of X1 = $30 and a premium of P = $5, and selling a call with an exercise price of X2 = $109 and a premium of C = $4. Both options mature in 7 months, and both have the same underlying asset. In addition, you buy the underlying asset for its current spot price of S = $64. Find the profit of this collar at expiration if the ending price of the underlying asset is ST = $9. Do NOT use the $ symbol in your answer: just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. QUESTION 6 You form a collar by buying a put with an exercise price of X1 = $29 and a premium of P = $6, and selling a call with an exercise price of X2 = $98 and a premium of C = $6. Both options mature in 3 months, and both have the same underlying asset. In addition, you buy the underlying asset for its current spot price of 5 = $61. Find the profit of this collar at expiration if the ending price of the underlying asset is ST = $78. Do NOT use the symbol in your answer, just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. QUESTION 7 You form a collar by buying a put with an exercise price of X1 = $30 and a premium of P = $4, and selling a call with an exercise price of X2 = $81 and a premium of C = $5. Both options mature in 7 months, and both have the same underlying asset. In addition, you buy the underlying asset for its current spot price of 5 = $65. Find the profit of this collar at expiration if the ending price of the underlying asset is ST = $145. Do NOT use the $ symbol in your answer; just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive
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