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which is the best trade today if AAPL stock closes at $230/share in 1-month? Show the profit/loss of each choice. Assume there are no transaction
which is the best trade today if AAPL stock closes at $230/share in 1-month? Show the profit/loss of each choice. Assume there are no transaction costs and ignore margins in case of shorting (selling) options.
a. Buy 100 shares of AAPL stock at $225/share and sell in one month
b. Buy 1 call option at 235 strike expiring in 1-month for 1.50
c. Sell 1 call option at 235 strike expiring in 1-month for 1.50
d. Buy 1 put option at 235 strike expiring in 1-month for 10
e. Sell 1 put option at 235 strike expiring in 1-month for 10
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