# Question

Construct a spreadsheet for which you can input up to five strike prices and quantities of put and call options bought or sold at those strikes, and which will automatically construct the total expiration payoff diagram for that position. Modify the spreadsheet to permit you to choose whether to graph a payoff or profit function.

## Answer to relevant Questions

Suppose you buy theS&Rindex for $1000 and buy a 950-strike put. Construct payoff and profit diagrams for this position.Verify that you obtain the same payoff and profit diagram by investing $931.37 in zero-coupon bonds and ...Suppose the premium on a 6-month S&R call is $109.20 and the premium on a put with the same strike price is $60.18. What is the strike price? Golddiggers has zero net income if it sells gold for a price of $380. However, by shorting a forward contract it is possible to guarantee a profit of $40/oz. suppose a manager decides not to hedge and the gold price in 1 ...Using the information in Table 4.11, verify that a regression of revenue on price gives a regression slope coefficient of about 100,000. •XYZ mines copper, with fixed costs of $0.50/lb and variable cost of ...If Telco does nothing to manage copper price risk, what is its profit 1 year from now, per pound of copper that it buys? If it hedges the price of wire by buying copper forward, what is its estimated profit 1 year from now? ...Post your question

0