Premiums ***** Strike Call ............. Put ..... 90......... 14.63 0.24.... 100 6.80 1.93 ..... ******* for...
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Premiums ***** Strike Call ............. Put ..... 90......... 14.63 0.24.... 100 6.80 1.93 ..... ******* for stock XYZ options with 6 months to expiration: 2.17.......... Assume the effective 6-month interest rate is 5.13% and the current spot price stock XYZ is 100. ................ 6.81..... *You have to answer the following two questions on your own words! You can answer them in either Bahasa or English. A. Find payoff and profit piecewise functions then roughly construct payoff and profit diagrams for: Sale of both 100-strike call and 100-strike put options and at the same time purchase of a 90-strike put and purchase of a 110-strike call. Show your work! B. What is the purpose of implementing this portfolio? Justify your answer! You need to submit your OWN work as an attachment. Premiums ***** Strike Call ............. Put ..... 90......... 14.63 0.24.... 100 6.80 1.93 ..... ******* for stock XYZ options with 6 months to expiration: 2.17.......... Assume the effective 6-month interest rate is 5.13% and the current spot price stock XYZ is 100. ................ 6.81..... *You have to answer the following two questions on your own words! You can answer them in either Bahasa or English. A. Find payoff and profit piecewise functions then roughly construct payoff and profit diagrams for: Sale of both 100-strike call and 100-strike put options and at the same time purchase of a 90-strike put and purchase of a 110-strike call. Show your work! B. What is the purpose of implementing this portfolio? Justify your answer! You need to submit your OWN work as an attachment.
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A Payoff and Profit Diagrams for Combined Options Strategy Payoff Function If S 90 ... View the full answer
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