The table below shows the prices of call and puts at different strike prices of options on
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Question:
The table below shows the prices of call and puts at different strike prices of options on Alphabet Inc. (GOOG) on 12th February, 2021. The expiration of all options are same - June 18, 2021. The market price of the GOOG stock on 12th February, 2021 is $2,092.91. Remember to make buy /sell decisions of options based on bid/ask prices (not last prices).
If you expect stock price is more likely to go up to $3,000, what strategy ((spread (bull/bear/box/butterfly) or straddle or strangle or strip/strap) would better serve you? Explain. Calculate payoff and profit of the strategy.
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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