Draw and label the following on a short put over the SPI200 with an exercise price of
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Question:
- Draw and label the following on a short put over the SPI200 with an exercise price of 7850, which has a premium of 26.5 points a. Strike price
- b. premium
- c. breakeven
- d. at the money
- e. in the money
- f. out of the money
- 2. Draw the payoff diagram and determine the payoff table, in points and dollars, for the following SPI200 option strategy: a. Purchase 12 7875 put options for a premium of 16.5 points
- b. Sell 20 7900 put options at a premium of 37.0 points
- c. sell 18 7900 call options at a premium of 36.5 points
- d. Purchase 14 7925 call options for a premium of 11.0 points
- 3. If the market should expire at 7908, how much premium will be received or paid in points and dollars
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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