option trading strategies?
July 6th, 2010
Use appropriate option trading strategies in the table to design the payoff in the graph (how does the graph look like??)
Call Strike Put
25 450 11
13 500 18
9 550 25
Calculate the break even points
When the underlying asset price is 700, what is the profit/loss?
the ‘table’ is the below figures coprising call premiums, put premiums and strike prices.
I dont care if such option exists i just need an answer to this problem. The question how to get rich is totally different issue which i am not interested atm
thanks for you help!!!! Anyway, the question is still left unanswered…!
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I wish there was a security with option premiums as shown, but in reality, these numbers are impossible.
If a 450 call is at 25, and a 550 put is at 25, I would buy an infinite number of these combinations for a combined 50, as the combination must be worth at least 100 no matter where the underlying asset is priced.
There is no table.
where’s the link?