For propicia assume the effective 6-month interest rate is 2%, 6-month forward price is 1020, and...

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For propicia assume the effective 6-month interest rate is 2%, 6-month forward price is 1020, and use these premiums for S&R options with 6 months to expiration: 1. Suppose the current price of S&R index is 1000. Find payoff and profit of the following positions if the underlying asset S&R index is 900, 950, 1000 or 1050 in 6 months: 900 Positions 950 6-month short forward 6-month long 1000-call 6-month short 1000-put written 1000-straddle (1000-call and 1000-put) 950-1000 strangle (950-put and 1000-call) Payoff Profit Payoff Profit 1000 Strike Call 950 1000 1020 1050 1050 Payoff Profit Payoff Profit Payoff Profit (Payoff is the value of position at expiration. Profit is the payoff less future value of the initial cost.) 120.405 93.809 84.470 71.802 Put 51.777 74.201 84.470 101.214 For propicia assume the effective 6-month interest rate is 2%, 6-month forward price is 1020, and use these premiums for S&R options with 6 months to expiration: 1. Suppose the current price of S&R index is 1000. Find payoff and profit of the following positions if the underlying asset S&R index is 900, 950, 1000 or 1050 in 6 months: 900 Positions 950 6-month short forward 6-month long 1000-call 6-month short 1000-put written 1000-straddle (1000-call and 1000-put) 950-1000 strangle (950-put and 1000-call) Payoff Profit Payoff Profit 1000 Strike Call 950 1000 1020 1050 1050 Payoff Profit Payoff Profit Payoff Profit (Payoff is the value of position at expiration. Profit is the payoff less future value of the initial cost.) 120.405 93.809 84.470 71.802 Put 51.777 74.201 84.470 101.214