Question
Suppose you buy one SPX call option with a strike of 2135 and write one SPX call option with a strike of 2195. What are
Suppose you buy one SPX call option with a strike of 2135 and write one SPX call option with a strike of 2195. What are the payoffs at maturity to this position for S&P 500 Index levels of 2050, 2100, 2150, 2200, and 2250? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Index level Long call payoff Short call payoff Total payoff
2050
2100
2150
2200
2250
2.
Strike | Calls | Puts | |||||
Close | Price | Expiration | Vol. | Last | Vol. | Last | |
Hendreeks | |||||||
103 | 100 | Feb | 72 | 5.20 | 50 | 2.40 | |
103 | 100 | Mar | 41 | 8.40 | 29 | 4.90 | |
103 | 100 | Apr | 16 | 10.68 | 10 | 6.60 | |
103 | 100 | Jul | 8 | 14.30 | 2 | 10.10 | |
Suppose you buy 25 February 100 call option contracts. Hendreeks stock is selling for $105.50 per share on the expiration date. How much is your options investment worth? What if the stock price is $101.40 on the expiration date? (Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started