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Short a call option with a strike price of $1.25 and a premium of $0.12.

Long a call option with a strike price of $1.35 and a premium of $0.02.

Short a put option with a strike price of 41.35 and a premium of $0.03.

a. Draw the final contigency graph (include break even, max loss, max gain)

b. Compare your final graph with one of the three original graphs (from the question). Tell me if you see an opportunity to make some money. If so, how would you do it?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92837191

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