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Question: i) Plot the Short call + Short put strategy with using call option in problem 4 and put option in problem 5

ii) What are the maximum profit and loss per share of this strategy?

iii) What is the profit or loss per share when price of stock is $0?

iv) What are the prices ranges for profit and loss?

Call (from problem 4): exercise price(X) =$78, price of call option Co=$8/share

Put (from problem 5): exercise price(X) =$60, price of call option Co=$7/share

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92767432

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