How to construct following option strategies. Long call Butterfly spread K1 = 62 at Call Price =

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How to construct following option strategies.

Long call Butterfly spread

K1 = 62 at Call Price = 8.907/ Put Price= 0.137

K2 = 69 at Call Price= 3.386/Put Price= 1.529

K3 = 76 at Call Price= 0.714/ Put Price= 5.77

Short Strap

K1= 62 Call Price= 8.907/ Put Price = 0.137

K2= 69 Call Price= 3.386/ Put Price = 1.529

What will be the following if Stock prices are 60,61,62,63,64,65,66 in both cases.

Construct a table & graph for both the cases.

PayoffK1=?
PayoffK2=?
Payoffk3=?
Total Payoff=?
Profit/Loss=?

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Derivative Pricing

ISBN: 9780367734213

1st Edition

Authors: Ambrose Lo

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Posted Date: Feb 21, 2024 05:04 AM

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How to construct following option strategies. Long call Butterfly spread K1 = 62 at Call Price =

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1 Long Call Butterfly Spread The long call butterfly spread is a combination of three call options w... View the full answer

Derivative Pricing

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