Question: Using R, complete the following steps. Create a function that can be used to generate the net returns from exercising a Call Option where inputs
-
Using R, complete the following steps.
-
Create a function that can be used to generate the net returns from exercising a Call
Option where inputs include strike price, ending price, and premium rate. (Note: The function should be general enough to take any combination of these three inputs and provide the net returns from exercising.)
-
Using the function created above and assuming a strike price of 100 and a premium rate of 5, compute the net returns for a string of ending prices for 50, 55, 60,...,145,150. Plot the net returns against ending price.
-
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
