Question
The following table shows the stock price and options premiums for several strike prices and expiration dates. SK Calls Puts NOV DEC JAN NOV
The following table shows the stock price and options premiums for several strike prices and expiration dates. SK Calls Puts NOV DEC JAN NOV DEC JAN 25 20 - - 7.30 .10 - .55 25 22.50 3.20 3.40 - 1.25 25 25 1.50 4.00 1.40 1.95 2.10 25 27.50 .60 .88 3.50 4.00 25 .16 .70 .90 5.10 5.40 5.50 Based on the premiums given in the table above, show the table of cash flows per share and the P/L profile per share at expiration of the following strategy: Long the K=30 DEC put and Short 2 of the K=30 DEC calls
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Fundamentals Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
0072553073, 9780072553079
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