Question: 42. Here is some data set Strike 35 40 45 Call premium 6.13 2.78 0.97 Put premium 0.44 1.99 5.08 Current stock price is $40.
42. Here is some data set Strike 35 40 45 Call premium 6.13 2.78 0.97 Put premium 0.44 1.99 5.08 Current stock price is $40. a) Create a straddle using 40-call and 40-put. Copy the profit diagram and paste it here. What is the maximum loss, maximum profit, break even points? b) Create a strangle using 35-put and 45-call. Copy the profit diagram and paste it here. What is the maximum loss, maximum profit, break even points? c) Suppose you bought a stock at $40. Create a protective put by buying 45-put. Copy the profit diagram and paste it here. What is the maximum loss, maximum profit, break even points? d) Create a box spread using above put, call options. Copy the profit diagram and paste it here. What is the maximum loss, maximum profit, break even points? e) Submit the excel sheet you created in above and answer to these questions
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