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Option Trading Strategies - Two Assets $40 First Asset Profit Second Asset Profit Total Profit - 1st Exercise Price Znd Exercise Price $20 $20 -$40 $20 $40 $60 $80 Stock Price At Maturity Long Call $20 + Short Call $35 Long Put $40 + Long Call $40 Long Underlying $20 + Short Call $20 Long Call $40 + Short Call $50 Long Put $40 Long Put $40 + Long Call $50 Long Call $40 Long Call $25 + Short Call S35 + Short Call $35 + Long Call S45 Short Call $25 + Long Call $35 + Long Call $35 + Short Call $45 Short Call $40 + Short Put $40 Profit

Option Trading Strategies - Two Assets $40 First Asset Profit Second Asset Profit Total Profit - 1st Exercise Price Znd Exercise Price $20 $20 -$40 $20 $40 $60 $80 Stock Price At Maturity Long Call $20 + Short Call $35 Long Put $40 + Long Call $40 Long Underlying $20 + Short Call $20 Long Call $40 + Short Call $50 Long Put $40 Long Put $40 + Long Call $50 Long Call $40 Long Call $25 + Short Call S35 + Short Call $35 + Long Call S45 Short Call $25 + Long Call $35 + Long Call $35 + Short Call $45 Short Call $40 + Short Put $40 Profit

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Option Trading Strategies - Four Assets $40 First Asset Profit Second Asset Profit Third Asset Profit -Fourth Asset Profit $20 Total Profit 1st Exercise Price 2nd Exercise Price 3rd Exercise Price 4th Exercise Price $20 -$40 $0 $20 $40 $60 $80 Stock Price At Maturity Long Call $40 + Short Call $50 Long Call $40 Short Call $25 + Long Call $35 + Long Call $35 + Short Call $45 Short Call $40 + Short Put $40 Long Call $20 + Short Call $35 Long Put $40 Long Put $40 + Long Call $50 Long Call $25 + Short Call S35 + Short Call $35 + Long Call $45 Long Underlying S20 + Short Call $20 Long Put $40 + Long Call $40 Profit
Transcribed Image Text:Option Trading Strategies - Four Assets $40 First Asset Profit Second Asset Profit Third Asset Profit -Fourth Asset Profit $20 Total Profit 1st Exercise Price 2nd Exercise Price 3rd Exercise Price 4th Exercise Price $20 -$40 $0 $20 $40 $60 $80 Stock Price At Maturity Long Call $40 + Short Call $50 Long Call $40 Short Call $25 + Long Call $35 + Long Call $35 + Short Call $45 Short Call $40 + Short Put $40 Long Call $20 + Short Call $35 Long Put $40 Long Put $40 + Long Call $50 Long Call $25 + Short Call S35 + Short Call $35 + Long Call $45 Long Underlying S20 + Short Call $20 Long Put $40 + Long Call $40 Profit
Option Trading Strategies - Two Assets $40 First Asset Profit Second Asset Profit Total Profit 1st Exercise Price -2nd Exercise Price $20 $20 -$40 $0 $20 $40 $60 $80 Stock Price At Maturity Long Call $20 + Short Call $35 Long Put $40 + Long Call $40 Long Underlying $20 + Short Call $20 Long Call $40 + Short Call $50 Long Put $40 Long Put $40 + Long Call $50 Long Call $40 Long Call $25 + Short Call S35 + Short Call $35 + Long Call $45 Short Call $25 + Long Call $35 + Long Call $35 + Short Call $45 Short Call $40 + Short Put $40 Profit
Transcribed Image Text:Option Trading Strategies - Two Assets $40 First Asset Profit Second Asset Profit Total Profit 1st Exercise Price -2nd Exercise Price $20 $20 -$40 $0 $20 $40 $60 $80 Stock Price At Maturity Long Call $20 + Short Call $35 Long Put $40 + Long Call $40 Long Underlying $20 + Short Call $20 Long Call $40 + Short Call $50 Long Put $40 Long Put $40 + Long Call $50 Long Call $40 Long Call $25 + Short Call S35 + Short Call $35 + Long Call $45 Short Call $25 + Long Call $35 + Long Call $35 + Short Call $45 Short Call $40 + Short Put $40 Profit
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