You are given the following information about your European Options Portfolio - All of which...
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Accounting
You are given the following information about your European Options Portfolio - All of which are for the same underlying security and have the same expiration date: Assume that there is only 1 unit of the underlying security per option contract.
Assume that the final Stock price at Maturity is $ 22.0. Just input the $ amounts for each of the following scenarios.
Please answer the following questions and enter the relevant amounts as follows:
If the answer is $12.0, enter 12
If the answer is $ -12.3, enter -12.3
Position | Strike Price ($) | Option Premium ($) |
A. 10 Long Calls | 20 | 1.5 |
B. 5 Short Calls | 15 | 4.0 |
C. 10 Long Puts | 15 | 0.7 |
D. 7 Short Puts | 20 | 3.0 |
1. Compute the Payoff for A .
2. Compute the Payoff for B .
3. Compute the Payoff for C .
4. Compute the Payoff for D .
5. Total Portfolio Payoff
6. Compute the Profit for A .
7. Compute the Profit for B .
8. Compute the Profit for C .
9. Compute the Profit for D .
10. Total Portfolio Profit
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