Question
XYZ CORP Exercise NYSE Date Price Price Close Calls OCT 85 16 3/4 101 11/16 OCT 90 12 101 11/16 OCT 95 7 5/8 101
XYZ CORP |
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| Exercise |
| NYSE |
| Date | Price | Price | Close |
Calls | OCT | 85 | 16 3/4 | 101 11/16 |
| OCT | 90 | 12 | 101 11/16 |
| OCT | 95 | 7 5/8 | 101 11/16 |
Puts | OCT | 85 | 1/8 | 101 11/16 |
| OCT | 90 | 3/8 | 101 11/16 |
| OCT | 95 | 13/16 | 101 11/16 |
If you establish a long straddle using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
If you establish a long strap using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
If you establish a long strip using the options with a 90 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
If you establish a long straddle using the options with a 95 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
Refer to Exhibit 22.2. If you establish a long strap using the options with a 95 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
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