Question: You simultaneously write a covered put and buy a protective call, both with strike prices of $40, on stock that you have shorted at $40.
| You simultaneously write a covered put and buy a protective call, both with strike prices of $40, on stock that you have shorted at $40. What are the expiration date payoffs to this position for stock prices of $30, $35, $40, $45, and $50? (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Stock Price | Short Profit | Short Put Payoff | Protective Call Payoff | Total Payoff | ||||
| $30 | $ | $ | $ | $ | ||||
| $35 | $ | $ | $ | $ | ||||
| $40 | $ | $ | $ | $ | ||||
| $45 | $ | $ | $ | $ | ||||
| $50 | $ | $ | $ | $ | ||||
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