Suppose you buy one SPX call option with a strike of 1,470 and write one SPX call option with a strike of 1,495. What are the "per share" (i.e., per unit) payoffs at maturity to this position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative answers should be indicated by a minus sign. Leave no cells blank be certain to enter "0" wherever required.) Index level 1350 1400 1450 1500 1550 Long call payoff 100 Short call payoff Total payoff
Suppose you buy one SPX call option with a strike of 1,470 and write one SPX call option with a strike of 1,495. What are the "per share" (i.e., per unit) payoffs at maturity to this position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative answers should be indicated by a minus sign. Leave no cells blank be certain to enter "0" wherever required.) Index level 1350 1400 1450 1500 1550 Long call payoff 100 Short call payoff Total payoff
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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![Suppose you buy one SPX call option with a strike of 1,470 and write one SPX call option
with a strike of 1,495. What are the "per share" (i.e., per unit) payoffs at maturity to this
position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative
answers should be indicated by a minus sign. Leave no cells blank - be certain to
enter "0" wherever required.)
Index level
1350
1400
1450
1500
1550
Long call
payoff
Short call
payoff
Total payoff](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39eb2669-cfef-481c-993a-c83c3a7434b4%2Faa54f3a8-8d33-4458-802b-71da970acfb9%2Fahw0xyp_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose you buy one SPX call option with a strike of 1,470 and write one SPX call option
with a strike of 1,495. What are the "per share" (i.e., per unit) payoffs at maturity to this
position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative
answers should be indicated by a minus sign. Leave no cells blank - be certain to
enter "0" wherever required.)
Index level
1350
1400
1450
1500
1550
Long call
payoff
Short call
payoff
Total payoff
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