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The interest rate per year is 3%. On February 14, call options on Royal Dutch Shell expiring on July 1 with an exercise price of
The interest rate per year is 3%. On February 14, call options on Royal Dutch Shell expiring on July 1 with an exercise price of 50 sold for $4.60, while put options with the same exercise price and expiration date sold for $1.55. You can go long or short 5,000 units in any asset mentioned above. The current price of Royal Dutch Shell is X. Graph
your profits on July 1 as X goes from 45 to 57.
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