You own a portfolio of 1-year options on TSLA that includes long 1 contract of a put option at K=300, short 1 contract of a straddle at K=500, and long 1 contract of call option at K=700. What will be the payoff at expiry to your portfolio if the TSLA price at expiry is 

(a) $200 ,

 (b) $450 ,

 (c) $1000  

1 contract is 100 shares.

Answer rating: 100% (QA)

To calculate the payoff of your portfolio at expiration for different TSLA prices you need to consider the payoff for each individual option and then ... View the full answer