Draw the NET and GROSS payoff diagrams for the following strategies, given that the stock price...
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Draw the NET and GROSS payoff diagrams for the following strategies, given that the stock price of Everbridge Inc. (EVBG) is 27.90 on June 15, 2023. Use the bid and ask prices, when you are short and long respectively, in your calculations. a) Write (i.e. sell) an October put at 25. b) Write an October call at 25. c) Write an October call at 29. d) Buy a share of EVBG stock and write an October call at 25. e) Buy a share of EVBG stock and buy an October put at 25. f) Buy a 25-29 October bullish call spread (i.e. buy the lower strike call and sell the higher strike call). g) Buy a 25-29 October bearish put spread (i.e. buy the higher strike put and sell the lower strike put). h) Buy an October 25-29 box (i.e. buy a bullish call spread and buy a bearish put spread). i) Sell an October straddle (i.e. sell a put and a call) at 25. j) Buy an October butterfly spread (i.e. buy a call at 25, buy a call at 29 and write two calls at 27) k) Buy a share of stock, buy an October put at 25 and write an October call at 25. December Option Prices Of EVBG Group, June 15, 2023 Bid 1.20 1.50 1.80 2.15 2.65 3.00 3.60 4.20 4.80 Puts Ask 1.35 1.60 1.95 2.30 2.75 3.30 3.80 4.40 5.00 Strike 23 24 25 26 27 28 29 30 31 Bid 6.30 5.60 4.90 4.30 3.7 3.2 2.75 2.3 2.00 Calls Ask 6.50 5.80 5.10 4.50 3.9 3.4 2.9 2.5 2.15 Draw the NET and GROSS payoff diagrams for the following strategies, given that the stock price of Everbridge Inc. (EVBG) is 27.90 on June 15, 2023. Use the bid and ask prices, when you are short and long respectively, in your calculations. a) Write (i.e. sell) an October put at 25. b) Write an October call at 25. c) Write an October call at 29. d) Buy a share of EVBG stock and write an October call at 25. e) Buy a share of EVBG stock and buy an October put at 25. f) Buy a 25-29 October bullish call spread (i.e. buy the lower strike call and sell the higher strike call). g) Buy a 25-29 October bearish put spread (i.e. buy the higher strike put and sell the lower strike put). h) Buy an October 25-29 box (i.e. buy a bullish call spread and buy a bearish put spread). i) Sell an October straddle (i.e. sell a put and a call) at 25. j) Buy an October butterfly spread (i.e. buy a call at 25, buy a call at 29 and write two calls at 27) k) Buy a share of stock, buy an October put at 25 and write an October call at 25. December Option Prices Of EVBG Group, June 15, 2023 Bid 1.20 1.50 1.80 2.15 2.65 3.00 3.60 4.20 4.80 Puts Ask 1.35 1.60 1.95 2.30 2.75 3.30 3.80 4.40 5.00 Strike 23 24 25 26 27 28 29 30 31 Bid 6.30 5.60 4.90 4.30 3.7 3.2 2.75 2.3 2.00 Calls Ask 6.50 5.80 5.10 4.50 3.9 3.4 2.9 2.5 2.15
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To create net and gross payoff diagrams for the given options strategies we need to calculate the pa... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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