Question

Mr. Cabinet is interested in the payoffs to combinations of options. Graph the intrinsic values of the following portfolios (all options expire on the same day and are written on the same non-dividend-paying asset).
a. Long one call, strike = $25; long one put, strike = $20
b. Short one call, strike = $25; long one put, strike = $15
c. Long one call, strike = $25; short one put, strike = $25
d. Long one call, strike = $25; short one share of underlying asset
e. Long one call, strike = $25; short one share; $25 in cash
f. Long one put, strike = $25; long one share; short $25 in cash (i.e., repay loan)



$1.99
Sales0
Views62
Comments0
  • CreatedFebruary 25, 2015
  • Files Included
Post your question
5000