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
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
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
Related questions
Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F625e400a-444b-4a1e-8aa6-79b2dfefb865%2F3a0a3aa2-cc85-4f2c-b56f-3afd95f3af5f%2Fxuxhij_processed.png&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education