Look at the following information. Security Qty Bid Ask Invesco QQQ Trust ETF $399.61 $399.63 QQQ 14
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Question:
Look at the following information.
Security | Qty | Bid | Ask |
Invesco QQQ Trust ETF |
| $399.61 | $399.63 |
QQQ 14 JAN 2022 410 CALL | 20 | $0.07 | $0.10 |
QQQ 14 JAN 2022 415 CALL | 20 | $0.01 | $0.04 |
QQQ 14 JAN 2022 390 PUT | 20 | $0.35 | $0.36 |
QQQ 14 JAN 2022 385 PUT | 20 | $0.17 | $0.19 |
a. If you decide to enter into iron condor spread, how would it be structured, and what would the potential profit or loss be?
b. What is the spread's profit-to-loss ratio?
c. How much margin (buying power) does this position require?
d. What are the breakeven points?
e. If the QQQ monthly historic volatility is 2.65%, what is the expected return of this spread?
Expert Answer:
a To create an iron condor spread we need to sell an outofthemoney OTM call spread and an OTM put sp... View the full answer
Related Book For 
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
Posted Date:
