Consider contracts (call, put, forward) on 1 share of Tesla

Expiration date: December, 31 of current year.Forward price is $ 100.

Strike price is$ 100 for options. Cost of options is $ 10 for put and for call.

Consider a range of prices for Tesla on the expiration day:

$ 0, $ 20, $ 40, $ 60, $ 80, $ 100, $ 120, $ 140 ....per share.

Prepare spreadsheet and a sketchfor the following:

Findexpiration day payoff(ignore the proceeds of initial sale) to asellerof

Findprofit and loss (including the proceeds of initial sale) to asellerof

Answer rating: 100% (QA)

To calculate the expiration day payoff and profitloss for the seller of the options we need to consi... View the full answer