Question
task. Background: The market is efficient and provides a put-call parity. All options are European, the strike price for call and put options is the
task. Background: The market is efficient and provides a put-call parity. All options are European, the strike price for call and put options is the same, they are based on the same stocks. The expiry date of options is 1 year. Data on options are presented in Table 1. Assignment: Build charts (diagrams) illustrating the winnings and losses of the following strategies:
1. Buying an option call.
2. Selling the Option Call.
3. Buying an option put.
4. Selling put option.
Table 1.
Share price | Risk-free interest rate, % | Execution Price, | The cost of the call. | The cost of put |
67 | 11 | 67 | 8,41 |
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