(A)Based on the following information about stock ABC form a long condor spread. Stock price $ 100...

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(A)Based on the following information about stock ABC form a long condor spread.

Stock price $ 100

Annualised Volatility20%

Maturity 35 days

Risk free rate1%.

Use Black scholes option pricing model for determining option premium.

Strike prices are available at $ 5 interval between $75-$120.

(B) Why is long condor is formulated ?

( C) Show profit and loss chart of the spread formulated in (a) above with the expected spot price range of $ 70-130.

Posted Date: May 10, 2024 02:37 AM

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(A)Based on the following information about stock ABC form a long condor spread. Stock price $ 100...

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Answer A Forming a Long Condor Spread for Stock ABC Given information Stock price 100 Annualized Volatility 20 Maturity 35 days Riskfree rate 1 Strike ... View the full answer

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