Question: Given the information in the table below, you are required to make the payoff and profit & loss diagram for the following strategies: 1. Strategy
Given the information in the table below, you are required to make the payoff and profit & loss diagram for the following strategies:
1. Strategy 1: Buy 1 share of stock
2. Strategy 2: Buy 1 call option
3. Strategy 3: Short call
4. Strategy 4: Write 1 put option
5. Strategy 5: Long put
6. Strategy 6: Buy 1 call option and write 1 put option with strike $330
7. Strategy 7: Buy 1 call and buy one share of stock
8. Strategy 8: Buy 1 call option and buy 1 put option with strike $330
Type
Maturity
Strike
Bid
Ask
Call
Dec 2020
330
25.35
27.15
Put
Dec 2020
330
30.15
31.45
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