Suppose a put option has X-103 and Premium=8. As a seller of the put, what is the minimum profit/loss?

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
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Suppose a put option has X=103 and Premium=8. As a seller of the put, what is the minimum profit/loss?
Transcribed Image Text:Suppose a put option has X=103 and Premium=8. As a seller of the put, what is the minimum profit/loss?
Suppose you want to establish a bullish spread strategy. The are two call options. The first one has X1=$50 and C1=$5. The second one has X2=$42 and C2=$6.
When the underlying asset price is S(t)=$45, what is the profit from the strategy?
What is the maximum profit of the strategy?
What is the minimum payoff of the strategy?|
Transcribed Image Text:Suppose you want to establish a bullish spread strategy. The are two call options. The first one has X1=$50 and C1=$5. The second one has X2=$42 and C2=$6. When the underlying asset price is S(t)=$45, what is the profit from the strategy? What is the maximum profit of the strategy? What is the minimum payoff of the strategy?|
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