Consider the following options for AAPL currently priced at $203.00: Call with strike of $180 $25.00...

Transcribed Image Text:

Consider the following options for AAPL currently priced at $203.00: Call with strike of $180 $25.00 Call with strike of $195 $15.00 Call with strike of $210 $6.50 Put with strike of $205 $12.50 Put with strike of $175 $2.50 A. Construct a payoff diagram and chart for a bear spread on AAPL using puts. Report the breakeven, max gain, and max loss. A2. Do the same with calls (using the $210 and $180 strikes). B. Construct a payoff diagram and chart for a butterfly spread for AAPL Report the breakeven, max gain, and max loss C. Construct a payoff diagram and chart for a collar (not zero cost) for AAPL. Report the breakeven, max gain, and max loss. Using $210 strike call and $175 strike put. D. Construct a payoff diagram and chart for an iron condor (using $180 & $210 for calls) for AAPL Report the breakeven, max gain, and max loss Consider the following options for AAPL currently priced at $203.00: Call with strike of $180 $25.00 Call with strike of $195 $15.00 Call with strike of $210 $6.50 Put with strike of $205 $12.50 Put with strike of $175 $2.50 A. Construct a payoff diagram and chart for a bear spread on AAPL using puts. Report the breakeven, max gain, and max loss. A2. Do the same with calls (using the $210 and $180 strikes). B. Construct a payoff diagram and chart for a butterfly spread for AAPL Report the breakeven, max gain, and max loss C. Construct a payoff diagram and chart for a collar (not zero cost) for AAPL. Report the breakeven, max gain, and max loss. Using $210 strike call and $175 strike put. D. Construct a payoff diagram and chart for an iron condor (using $180 & $210 for calls) for AAPL Report the breakeven, max gain, and max loss

Answer rating: 100% (QA)

A Payoff diagram for a bear spread on AAPL using puts Strike Payoff 205 1250 203 100... View the full answer