Question: please do it in EXCEL and show the equation, THANKS Consider three put options on a currency selling for $1.45. The exercise prices are $1.30,

please do it in EXCEL and show the equation, THANKS

Consider three put options on a currency selling for $1.45. The exercise prices are $1.30, $1.40, and $1.50. The put prices are $0.06, $0.12, and $0.18, respectively. The puts all expire at the same time. You plan to create SHORT buttery using put options. A) Determine the value at expiration and the prot under the following outcomes: i. The price of the currency at expiration is $1.26 (1 point) ii. The price of the currency at expiration is $1.35 (1 point) iii. The price of the currency at expiration is $1.47 (1 point) iv. The price of the currency at expiration is $1.59 (1 point) B) Calculate the maximum prot (1 point) C) Calculate the maximum loss (1 point) D) Calculate the breakeven stock price at expiration (2 point)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
