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Suppose you want to create a bear put option strategy based on UBER put options. The bear put strategy will involve the following: Buying a
Suppose you want to create a "bear put" option strategy based on UBER put options. The bear put strategy will involve the following:
Buying a put option with strike price $
Selling a put option with strike price $
You want all of these options to have the same expiration date of July
a Go to Yahoo! Finance and search for Uber symbol: UBER then click on the "Options" tab, then select "July from the dropdown box below the stock price to obtain a list of UBER options with approximately six months to expiration. The "Ask" price is the price at which you can buy an option while the "Bid" price is the price at which you can sell an option.
Stock Price $
Report the bid and ask prices for the two put options described above. Also report the date and prevailing stock price when you retrieved these option prices.
Buy a put option at $$ sell a put option at $$
b Provide the payoff function for each range of strike prices in which the stock price could land at expiration. There are three ranges in which the stock price could land at expiration:
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