You have a portfolio that has two stocks: DOGS and CATS. DOGS has a volatility of...

  

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You have a portfolio that has two stocks: DOGS and CATS. DOGS has a volatility of 15%, while CATS has volatility of 10%. DOGS is 25% of your portfolio, while CATS is the rest. If the volatility of the return on your portfolio is 9.92%, the correlation between DOGS and CATS is You purchased 1 call option on ABC stock with strike price X=$100 and sold 2 call options on ABC stock with strike price X=$110. The premium on the X=$100 options was $5 each and the premium on $X=110 options was $3 each. If the stock price at maturity of the options is $115 what will be your profit? (Assume that the options are for 1 share of the underlying) You short a call option on the S&P 500 with strike price X=$4,200. You also go long in a call option on the S&P 500 with strike price X=$5,000. Both options have the same maturity. If the price of the S&P 500 is $4,500 at maturity of these options, what will be your payoff on this strategy? (Assume each option is for 1 of the underlying) You have a portfolio that has two stocks: DOGS and CATS. DOGS has a volatility of 15%, while CATS has volatility of 10%. DOGS is 25% of your portfolio, while CATS is the rest. If the volatility of the return on your portfolio is 9.92%, the correlation between DOGS and CATS is You purchased 1 call option on ABC stock with strike price X=$100 and sold 2 call options on ABC stock with strike price X=$110. The premium on the X=$100 options was $5 each and the premium on $X=110 options was $3 each. If the stock price at maturity of the options is $115 what will be your profit? (Assume that the options are for 1 share of the underlying) You short a call option on the S&P 500 with strike price X=$4,200. You also go long in a call option on the S&P 500 with strike price X=$5,000. Both options have the same maturity. If the price of the S&P 500 is $4,500 at maturity of these options, what will be your payoff on this strategy? (Assume each option is for 1 of the underlying)

Answer rating: 100% (QA)

Find the profit from this option strategy Given that you purchased 1 call option with a strike price ... View the full answer