You are given the following information about your European Options Portfolio - All of which are for the same underlying security and have the same
You are given the following information about your European Options Portfolio - All of which are for the same underlying security and have the same expiration date: Assume that there is only 1 unit of the underlying security per option contract. a. Fill in the Blank Cells for Payoffs and Profits. Position Strike Price ($) Option Premium ($) Payoff ($) Profit ($) A. 10 Long Calls 20 1.5 B. 5 Short Calls 15 4.0 C. 10 Long Puts 15 0.7 D. 7 Short Puts 20 3.0 b. Compute your Overall Portfolios Breakeven points
Assume that the final stock price is $18, in order to fill in the payoffs and profits.
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