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Use the following table of premiums for put and call options of different strike prices. If the price of the stock is $54, what is
Use the following table of premiums for put and call options of different strike prices. If the price of the stock is $54, what is the intrinsic value of the 50 call? What is the time value? Draw a payoff diagram for the 50 call. Draw a payoff diagram for the 60 put. Draw a payoff diagram for a bull spread using the 50 and 60 calls. Draw the payoff diagram for a bear spread using the 50 and 60 puts. Draw the payoff diagram for a straddle with exercise price of $50. Construct a butterfly spread using call options
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