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Start From below IllainS ii. You sell 6,000 put options at $2 each and 6,000 call options at $3 each. The exercise price of one
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IllainS ii. You sell 6,000 put options at $2 each and 6,000 call options at $3 each. The exercise price of one put option is $80 and the exercise of one call option is $90. a. What do you call this strategy? b. Calculate your total profit/loss for each of the following prices: $60, $70, $80, $90,$100 and $110. 7 marks IllainS ii. You sell 6,000 put options at $2 each and 6,000 call options at $3 each. The exercise price of one put option is $80 and the exercise of one call option is $90. a. What do you call this strategy? b. Calculate your total profit/loss for each of the following prices: $60, $70, $80, $90,$100 and $110. 7 marks Question 5 (11 points) i. You buy 5,000 4-month call options at $4 each and sell 4,000 4-month call options on the same share at $3 each. The first option has an exercise price of 100 while the second option has an exercise price of 120. a. What do you call this strategy? 4 b. Calculate your total profit/loss if the market price of a share on the date of expiry of the option is $80, $90, $100, $110,$120 and $130 A markeStep by Step Solution
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