Question
What are the benefits of trading option combinations? Using the simulator, please construct long bull put spread (350/330 strikes), short bear call spread (370/420 strikes),
What are the benefits of trading "option combinations"? Using the simulator, please construct long bull put spread (350/330 strikes), short bear call spread (370/420 strikes), long call-fly (430/440/450 strikes), short put-fly (350,340,330 strikes), long collar (buy 350p, sell 390 calls), long strangle (360/380 strikes), short straddle (370) and short 1x2 put ratio spread (370/340) individually. Please report their prices, rank these option combinations in terms of their "Greeks" (disregard delta). Also, mention how that combinations greeks would be affected by a 3% underlying move in either direction (20 marks)
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