The following table shows the stock price and options premiums for several strike prices and expiration...

 

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The following table shows the stock price and options premiums for several strike prices and expiration dates. SK Calls Puts NOV DEC JAN NOV DEC JAN 25 20 - - 7.30 .10 - .55 25 22.50 3.20 3.40 - 1.25 25 25 1.50 4.00 1.40 1.95 2.10 25 27.50 .60 .88 3.50 4.00 25 .16 .70 .90 5.10 5.40 5.50 Based on the premiums given in the table above, show the table of cash flows per share and the P/L profile per share at expiration of the following strategy: Long the K=30 DEC put and Short 2 of the K=30 DEC calls The following table shows the stock price and options premiums for several strike prices and expiration dates. SK Calls Puts NOV DEC JAN NOV DEC JAN 25 20 - - 7.30 .10 - .55 25 22.50 3.20 3.40 - 1.25 25 25 1.50 4.00 1.40 1.95 2.10 25 27.50 .60 .88 3.50 4.00 25 .16 .70 .90 5.10 5.40 5.50 Based on the premiums given in the table above, show the table of cash flows per share and the P/L profile per share at expiration of the following strategy: Long the K=30 DEC put and Short 2 of the K=30 DEC calls

Answer rating: 100% (QA)

To calculate the cash flows per share and the profitloss PL profile per share at expiration for the ... View the full answer