Assume that you have shorted the put option.
a. If the stock is trading at $8 in three months, what will you owe?
b. If the stock is trading at $23 in three months, what will you owe?
c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration.Assume that you have shorted the call option in Problem 2.
a. If the stock is trading at $55 in three months, what will you owe?
b. If the stock is trading at $35 in three months, what will you owe?
c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration.
Subscribe to:
Post Comments (Atom)
-
The Final Exam will be fourteen questions long. You will have a mixture of problems and essays. For the essays, you should have at leFinal E...
-
In which of these pairs of numbers is 2.25 larger than the first number but smaller than the second number? a. 1 and 2 b. 2 and 5/2 c. 5/4 a...
No comments:
Post a Comment