Suppose you buy one SPX call option with a strike of 2085 and write one SPX put option with a strike of 2085. What are the payoffs at maturity to this position for S&P 500 index levels of 2000, 2050, 2100, 2150, and 2200? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Index level 2000 2050 2100 2150 2200 Answer is complete but not entirely correct. Long call payoff 0 0 15 65 115 Short put payoff 85 0 -15 (65) (115) Total payoff 0 0X 0 4

Essentials Of Investments
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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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Subject:- finance 

Suppose you buy one SPX call option with a strike of 2085 and write one SPX put option with a strike of 2085. What
are the payoffs at maturity to this position for S&P 500 index levels of 2000, 2050, 2100, 2150, and 2200? (A
negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever
required.)
Index
level
2000
2050
2100
2150
2200
Answer is complete but not entirely correct.
Long call
payoff
0
0
15
65
115
Short put
payoff
85
0
-15 X
(65)
(115)
Total
payoff
0
0x
0x
0X
0x
Transcribed Image Text:Suppose you buy one SPX call option with a strike of 2085 and write one SPX put option with a strike of 2085. What are the payoffs at maturity to this position for S&P 500 index levels of 2000, 2050, 2100, 2150, and 2200? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Index level 2000 2050 2100 2150 2200 Answer is complete but not entirely correct. Long call payoff 0 0 15 65 115 Short put payoff 85 0 -15 X (65) (115) Total payoff 0 0x 0x 0X 0x
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