So=3014

X=2800; Put Price=81

X=3200; Call Price=90

(use X=2800 and X=3200 for Protective Put, Covered Call, and Collar)

X=3100; Call Price=125.81

X=3200; Call Price=90

(use X=3100 and X=3200 for Call Spread)

X=3000; Put Price=151.19

X=2900; Put Price=113.23

(use X=3000 and X=2900 for Put Spreads)

1. Assume you already own the stock. You choose to write a collar. Write the profits (or value) using notations used in class (X, S_T, P_P, P_C) under appropriate stock price regimes. Choose the out-of-the-money put option whose exercise price is just below 5% off the current price. Choose the out-of-the-money call option whose exercise price is just above 5% of the current price. Graph your portfolio value as a function of S_T. What is the maximum and minimum portfolio value that your portfolio could reach?
2. Write the profits using notations used in class (X, S_T, P_P, P_C) under appropriate stock price regimes for a bull spread created using calls. Choose the long exercise price such that that is just above the current price. Choose the short call exercise price to be $20 above the long call exercise price. State clearly the exercise price of the options that are bought and sold. Graph the profit profile as a function of S_T. What is the break-even price and under what price range do you make profits? What is the maximum profit and under what price range does this happen? What is the maximum loss and under price range does this happen?