Question: Please show all of your work. a 6. (6 points) Suppose you bought 1 call and 2 put options (a strip) each with a contract
Please show all of your work.
a 6. (6 points) Suppose you bought 1 call and 2 put options (a strip) each with a contract size of 125,000. If the puts have a strike price of $1.15/ and a premium of $0.015 each, and the call , has a strike of $1.15/ with a premium of $0.02, what is your overall net position (net profit) if the spot rate falls to $1.1150/? (Hint, consider the options separately and add the net profit)
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