Question
You own a portfolio of 1-year options on TSLA that includes long 1 contract of a put option at K=300, short 1 contract of a
You own a portfolio of 1-year options on TSLA that includes long 1 contract of a put option at K=300, short 1 contract of a straddle at K=500, and long 1 contract of call option at K=700. What will be the payoff at expiry to your portfolio if the TSLA price at expiry is
(a) $200 ,
(b) $450 ,
(c) $1000
1 contract is 100 shares.
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