You took a long position on a stock for $200 and a put option on it for

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You took a long position on a stock for $200 and a put option on it for $20 with a strike price of $190. You took a short position on a call option on it for $30.00 with a strike price of $200.

a. Find out how much your invested to take long position in the stock & put option and short position in the call option.

b. Find out the payoffs and profits of your position at expiration for the following prices:

i. $160, ii. $180, iii. $200 and iv. $240

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Derivative Pricing

ISBN: 9780367734213

1st Edition

Authors: Ambrose Lo

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Posted Date: Feb 23, 2024 11:57 PM

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You took a long position on a stock for $200 and a put option on it for

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To find out the amount invested to take a long position in the stock and put option as well as the s... View the full answer

Derivative Pricing

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