Someone PLEASE help me with my finance homework. I$\text{'}$m so confused & my professor is

no help.

For each one, we have to write the correct call and$/$or put transactions at the corresponding

strike for how many number of units, or write $\text{'}$no transaction needed' if none is needed for

that statement.

For example, an answer would look like: $1)$ Buy $100$ puts at $x$ of $415.$ Sell $100$ calls at $x$ of $430.$

Please also briefly explain any reasoning behind your answer so I can learn$/$study$.$

I will give a thumbs up$!!!$ Thank you in advance!!!

$-$For no price movement:

$1)$ If the SPY ends up at $415$ in $85$ days, then the ELS pays off at $415$ per unit at expiration $($or

$$41,500$ with the $100$ multiplier$).$

$-$On the Downside:

$2)$On the downside, for SPY declines down to a closing SPY of $395,$ the ELS payoff is flat and

stays at $415$ per unit. So$,$ if the SPY price ended up at $395$ in $85$ days, then the ELS payoff would

be $$41,500$ at expiration.

$3)$ For further SPY declines below $395,$ the ELS payoff will decline on a $1$:$1$ basis. So$,$ for

example, if the SPY ended up at $383,$ the ELS payoff would be $$40,300.$

$-$On the Upside:

$4)$ On the upside up to a SPY increase to $445,$ the ELS payoff will increase at a $2x$ rate $(2$:$1$ for

every $$1$ increase in the SPY$).$ So$,$ if the SPY ends at $445$ in $85$ days, the ELS payoff would be

$$47,500$ at expiration.

$5)$ For SPY outcomes between $445$ and $475,$ the ELS payoff will decrease on a $2$:$1$ basis for

every $$1$ increase in the SPY price. So$,$ if the SPY ended up at $475$ in $85$ days, the ELS payoff

would be $$41,500$ at expiration.

$6)$ If the SPY price goes up beyond $475,$ then the ELS payoff does not change further. So$,$ for

example, if the SPY ends up at $481$ in $85$ days, then the ELS payoff is still $$41,500$ at expiration.