Question: You simultaneously write a covered put and buy a protective call, both with strike prices of $35, on stock that you have shorted at $35
You simultaneously write a covered put and buy a protective call, both with strike prices of $35, on stock that you have shorted at $35 What are the expiration date payoffs to this position for stock prices of $25 $30, $35, $40, and $45? (A negative value should be indicated by a minus sign. Leave no cells blank.be certain to enter "O" wherever required.) Short profit Put payoff Call payoff Total payoff 57 Stock price $ 25 $ 30 5 35 S 40 S 45
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
