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Short strangle options trading strategy consists of writing a call and a put option at different exercise prices. Construct a profit/loss diagram for this option
- Short strangle options trading strategy consists of writing a call and a put option at different exercise prices. Construct a profit/loss diagram for this option strategy given the following information:
- Put option with a strike price X1= $25 and a premium of $1.5
- Call option with a strike price of X2=$32 and a premium of $2
- What's your profit or loss if the stock price is S=$31?
- Is the upside limited or not? Is the downside limited or not?
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Short Strangle ProfitLoss Diagram A short strangle involves selling a call and a put option profitin...
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Market Practice In Financial Modelling
Authors: Tan Chia Chiang
1st Edition
9814366544, 978-9814366540
