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| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
4.       Construct a bear money spread using the Octo- ber 165 and 170 calls. Hold the position until the options expire. Determine the profits and graph the results. Identify the breakeven stock price at expiration and the maximum and minimum profits. Discuss any special considerations asso- ciated with this strategy.
Repeat problem 4, but close the position on September 20. Use the spreadsheet to find the profits for the possible stock prices on September 20. Generate a graph and use it to identify  the
approximate breakeven stock price.
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|
Calls                        Puts |
 |
||||||
|
Strike |
Jul |
Aug |
Oct |
Jul |
Aug |
Oct |
|
|
 |
 |
 |
 |
 |
 |
 |
 |
|
160 |
6.00 |
8.10 |
11.10 |
0.75 |
2.75 |
4.50 |
 |
|
165 |
2.70 |
5.25 |
8.10 |
2.40 |
4.75 |
6.75 |
 |
|
170 |
0.80 |
3.25 |
6.00 |
5.75 |
7.50 |
9.00 |
|
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