The current price of a stock is Rs.43.50. Strike Call premium Put premium price...

80.2K

Verified Solution

Question

Finance

image

The current price of a stock is Rs.43.50. Strike Call premium Put premium price 43.30 0.90 0.40 43.50 0.50 0.60 43.70 0.30 1.00 A speculator found the following options traded in the market. She is of the opinion that the price is likely to experience wide variation though the direction is not clear, Suggest a suitable strategy and work out the pay-off profile over a range of prices from Rs 43.00 to Rs.44.00. (Round off the price to 10 paise)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students