Question
XYZ CORP EXIRATION DATE STRIKE PRICE Option Premium CALLS OCT 85 16.75 OCT 90 12 OCT 95 7.63 PUTS OCT 85 .13 OCT 90 .38
| XYZ CORP | |||
| EXIRATION DATE | STRIKE PRICE | Option Premium | |
| CALLS | OCT | 85 | 16.75 |
| OCT | 90 | 12 | |
| OCT | 95 | 7.63 | |
| PUTS | OCT | 85 | .13 |
| OCT | 90 | .38 | |
| OCT | 95 | .81 | |
Assuming you use the options with an 85 exercise price to create a portfolio consisting of two long strips, what is your dollar gain or loss if at expiration XYZ trades at 95? Do not use the dollar sign when entering your answer.
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
