Question: These are derivatives investment hedging problems. PLEASE YOUR ANSWER ON ONE EXCEL SHEET 1. An investor makes the following investment: Goes long 50 contracts on
These are derivatives investment hedging problems.
PLEASE YOUR ANSWER ON ONE EXCEL SHEET 1. An investor makes the following investment: Goes long 50 contracts on apple stock at K1=110 and c1=20, and short as many call contracts at K2=90 and c2=30. Derive the joint profIt when S1=130, S2-100 AND S3=75 2. An investor in 10 call contracts of AXP at K1=100 & c1=15 and long as many put contracts at k2=100 and p1=5. Derive the joint profit at S1=120, S2-100, S3=80
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