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XYZ stock is currently trading at a market price (S) of $145. Unless otherwise specified, you do not own the stock. Using Excel or drawing
- XYZ stock is currently trading at a market price (S) of $145. Unless otherwise specified, you do not own the stock. Using Excel or drawing by hand, create a payoff diagram for the following options positions using a range of +/- 50% of the current price (S) along the x-axis.
- Show 1) current price (S), 2) strike price (X) and 3) breakeven point on the graph.
- Assume 1 option controls 100 shares.
- Indicate if the option is in-, at- or out-of- the money.
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- Long 1 Call Option with a strike price (X) of $9 for a $2.85 premium.
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- Long 1 Call Option with a strike price (X) of $13 for a $0.92 premium.
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- Short 1 Call Option with a strike price (X) of $9 for a $2.80 premium.
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- Short 1 Call Option with a strike price (X) of $20 for a $0.18 premium.
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- Long 1 Put Option with a strike price (X) of $13 for a $2.50 premium.
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- Short 1 Put Option with a strike price (X) of $15 for a $4.00 premium.
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Collectible Investments For The High Net Worth Investor
Authors: Stephen Satchell
1st Edition
0123745225,0080923054
