Jack received 1,000 shares of IBM stock from his parents before Christmas. Today is Dec.26 and the
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Jack received 1,000 shares of IBM stock from his parents before Christmas. Today is Dec.26 and the stock is selling for $50 a share. The March call options on IBM shares with strike price $55 are currently selling for $5 each. The March put options on IBM stocks with strike price $45 sell for $2 each. While holding IBM shares, Jack writes 10 contracts of March 55 call options and buys 5 contracts of March 45 put options.
What is the value of his portfolio if IBM trades at $40 and $65, respectively?
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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