Thank you in advance

Q2. How option will react to underlying price movement.

Keep X=100 and MAD = 25.

Create a spreadsheet to:

Q2a. calculate PUT price, PUT intrinsic vs time value, while varying S0 from 50 to 150 with $1 increment.

Q2b. calculate CALL price, CALL intrinsic vs time value, while varying S0 from 50 to 150 with $1 increment.

Q2c. Graph PUT price and intrinsic value from Q2a in the same chart. x-axis is S0.

Q2d. Graph CALL price and intrinsic value from Q2b in the same chart. x-axis is S0.

Q3. How option will react to change in the RANGE of underlying price movement

Keep X=100

Create a spreadsheet to:

Q3a. Assume MAD=10. Calculate PUT price, while varying S0 from 80 to 120 with $1 increment.

Q3b. Assume MAD=20. Calculate PUT price, while varying S0 from 80 to 120 with $1 increment.

Q3c. Assume MAD=40. Calculate PUT price, while varying S0 from 80 to 120 with $1 increment.

Q3d. Graph all three PUT prices AND the intrinsic put value under different MAD assumption from Q3a-c in the same chart. x-axis is S0.

(note: intrinsic value is the same for all three MAD scenarios)

Q4. Redo Q3 for the case of CALL

Keep X=100

Create a spreadsheet to:

Q4a. Assume MAD=10. Calculate CALL price, while varying S0 from 80 to 120 with $1 increment.

Q4b. Assume MAD=20. Calculate CALL price, while varying S0 from 80 to 120 with $1 increment.

Q4c. Assume MAD=40. Calculate CALL price, while varying S0 from 80 to 120 with $1 increment.

Q4d. Graph all three CALL prices AND the intrinsic call values under different MAD assumption from Q4a-c in the same chart. x-axis is S0.

(note: intrinsic value is the same for all three MAD scenarios)