Question: Straps: Long two call options on a stock with strike price of $50 and option price of $7; Long a put option on the same
Straps: Long two call options on a stock with strike price of $50 and option price of $7; Long a put option on the same stock with strike price of $50 and option price of $6. The call and put options have the same expiration date. (**please fill out chart and graph thank you so much**)
Straps Long TWO Calls at K Long a Put at K $50.00 $50.00 Call option price Put option price Initial net cash flow Long a Put at K Strap Payoff Profit Payoff $7.00 $6.00 -$20.00 Long two Calls at K Payoff Profit Strap Profit 1.20 1.00 0.80 Stock (P) Price 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 0.60 0.40 0.20 0.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 Long two Calls at K Long a Put at K - Strap
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