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uestion 2 Suppose you want to create a Condor Spread option strategy based on PFE call options. The condor spread will involve the following .
uestion 2 Suppose you want to create a "Condor Spread" option strategy based on PFE call options. The condor spread will involve the following . Buying a call option with strike price $34 . Selling a call option with strike price $35 . Selling a call option with strike price $36 . Buying a call option with strike price $37 You want all of these options to have the same maturity of January 19, 2018 a) Go to Yahoo! Finance and search for Pfizer (symbol: PFE), then click on the "Options" tab, then select "January 19, 2018" from the dropdown box below the stock price to obtain a list of PFE options with approximately four 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 Report the bid and ask prices for each of the four call options described above. Also report the date, time, and stock price when you retrieved these options prices. You should collect these data during regular trading hours (10:30am to 5:00pm CST on weekdays), as bid and ask prices are sometimes not available during off-market hours. b) Like in class, provide the payoff function for each range of strike prices in which the stock price in could land at expiration. There are five ranges in which the stock price could land at expiration ST
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