Question: Show formulas in excel! Consider an options trader who sets up a condor trading strategy on Boston Scientific Corp. stock. The option trader buys a
| Show formulas in excel! Consider an options trader who sets up a condor trading strategy on Boston Scientific Corp. stock. The option trader buys a call option with a strike price of $25, sells a call option with a strike price of $30, sells a call option with a strike price of $40, and buys a call option with a strike price of $45. | ||||||
| Complete the table below with the correct formulas to show the profit/loss for different values of the stock price at the expiration of the options. |
| Call option | 1 | 2 | 3 | 4 | |
| Strike price | $25 | $30 | $40 | $45 | |
| Option price | $14.05 | $9.70 | $3.15 | $1.38 | |
| Call option | |||||
| Stock price | 1 | 2 | 3 | 4 | Profit/Loss |
| $0 | -$14.05 | $9.70 | $3.15 | -$1.38 | -$2.58 |
| $1 | $0.00 | ||||
| $2 | $0.00 | ||||
| $3 | $0.00 | ||||
| $4 | $0.00 | ||||
| $5 | $0.00 | ||||
| ^^THROUGH^^ | |||||
| $50 | $0.00 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock