Consider the following information on the options available on stock ABC. You intend to write one Jan maturity call option

Consider the following information on the options available on stock ABC. You intend to write one Jan maturity call option

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Consider the following information on the options available on stock ABC. You intend to write one Jan maturity call option
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Consider the following information on the options available on stock ABC. You intend to write one Jan maturity call option on company ABC’s stock with exercise price $105 and write one Jan maturity put option on the same underlying asset with strike price $100. The information of the options on the stock of company ABC is as follows:
 Graph the payoff as well as the profit/loss of this portfolio at option expiration.  At what price range will you break even on your investment based on the payoff?  What will be the payoff and profit/loss on this portfolio if company ABC trades at $102 on the option maturity date? 
Given the portfolio that you have constructed, what is most likely your view of the future for the price of ABC’s stock?  

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Strike 90 95 95 100 100 100 105 105 105 110 110 110 Expire Date Jan Jan Feb Jan Apr Jul Jan Feb Apr Jan Feb Apr Call Volume 45 216 10 911 29 5 3109 358 231 1986 1025 421 Price 14.875 9.625 12.375 5.25 11 13.375 1.75 5 7.75 0.375 2.9375 5.375 Put Volume 206 741 261 2021 319 225 2357 339 527 80 27 21 Price 0.125 0.25 1.875 0.75 4.75 6.625 2.25 5.25 6.5 5.75 7.5 9.25

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