Question
Sam the options trader sold 1 call option contract on JJJ common stock for $4 per option and at the same time he sold 1
Sam the options trader sold 1 call option contract on JJJ common stock for $4 per option and at the same time he sold 1 put option contract on JJJ common stock for $3 per option. The exercise (strike) price for both these options is $80. The current stock price is $81. Both options expire at the same time, 2 months in the future Assume that Sam maintains these positions until the expiration date of the options. Construct a table showing the dollar profits or losses from the combination of these two investments as a function of the stock price at the expiration date.
Stock Price | Call Profit | Put Profit | Net Profit |
0 | |||
70 | |||
71 | |||
72 | |||
73 | |||
74 | |||
75 | |||
76 | |||
77 | |||
78 | |||
79 | |||
80 | |||
81 | |||
82 | |||
83 | |||
84 | |||
85 | |||
86 | |||
87 | |||
88 | |||
89 | |||
90 | |||
91 |
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