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You are investing in an options strategy that involves buying a call option with a strike price of $30, selling two call options with a
You are investing in an options strategy that involves buying a call option with a strike price of $30, selling two call options with a strike price of $35, and buying another call option with a strike price of $40. Use an excel spreadsheet to figure out what the resultant strategy payout looks like. Hint: Use stock price range between $20 and $50 with increments of $2.5 to generate the payout. How would the shape of the strategy payout change, if at all, if you used put options instead of calls?
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