You are going to structure a conder spread according to the following conditions: (1) Exercise type: European; (2) option's underlying = 1 share of the stock; (3) Maximum payoff at maturity occurs within the range between ST-$90 and ST-$110; (4) Minimum payoff at maturity occurs either ST $110; [i] If the maximum payoff at maturity is $20 and the minimum payoff at maturity is $10 (as defined above), how much is today's cost of taking the condor spread position? Payoff 0 Without cost(at t=0) Payoff 0 ST So 1 T call(K, T) 22.45 13.49 6.54 2.46 0.73 With cost(at t=0) $100 12% pa (conti.) 0.25 year Strike prices(K) $80 $90 $100 $110 $120 put(K, T) 0.09 0.83 3.57 9.21 17.18 ST You are going to structure a conder spread according to the following conditions: (1) Exercise type: European; (2) option's underlying = 1 share of the stock; (3) Maximum payoff at maturity occurs within the range between ST-$90 and ST-$110; (4) Minimum payoff at maturity occurs either ST $110; [i] If the maximum payoff at maturity is $20 and the minimum payoff at maturity is $10 (as defined above), how much is today's cost of taking the condor spread position? Payoff 0 Without cost(at t=0) Payoff 0 ST So 1 T call(K, T) 22.45 13.49 6.54 2.46 0.73 With cost(at t=0) $100 12% pa (conti.) 0.25 year Strike prices(K) $80 $90 $100 $110 $120 put(K, T) 0.09 0.83 3.57 9.21 17.18 ST