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lab12-op-strategy-exercise_1.xls
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Data

Problem1

Problem1
1. Create Call Bull Spread
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1980 Call at Ask 1980
Sell 18_Oct 1990 Call at Bid 1990
Payoff Profits
St L 1980 Call S 1990 Call Combined L 1980 Call S 1990 Call Combined
1940
1950
1960
1970
1980 Place Graph Here
1990
2000
2010
2020
2030
2040
2. Create Put Bull Spread
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1980 Put at Ask 1980
Sell 18_Oct 1990 Put at Bid 1990
Payoff Profits
St L 1980 Put S 1990 Put Combined L 1980 Put S 1990 Put Combined
1940
1950
1960 Place Graph Here
1970
1980
1990
2000
2010
2020
2030
2040

Problem1
L 1980 Call
S 1990 Call
Combined
Spot Price at Maturity
Profit
Call Bull Spread

Problem2
L 1980 Put
S 1990 Put
Combined
Spot Price at Maturity
Profit
Put Bull Spread

Problem3

Problem2
3. Create Call Bear Spread
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1990 Call at Ask 1990
Sell 18_Oct 1980 Call at Bid 1980
Payoff Profits
St L 1990 Call S 1980 Call Combined L 1990 Call S 1980 Call Combined
1940
1950
1960 Place Graph Here
1970
1980
1990
2000
2010
2020
2030
2040
4. Create Put Bear Spread
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1990 Put at Ask 1990
Sell 18_Oct 1980 Put at Bid 1980
Payoff Profits
St L 1990 Put S 1980 Put Combined L 1990 Put S 1980 Put Combined
1940
1950
1960 Place Graph Here
1970
1980
1990
2000
2010
2020
2030
2040

Problem3
L 1990 Call
S 1980 Call
Combined
Stock Price at Maturity
Profit
Call Bear Spread

Problem4
L 1990 Put
S 1980 Put
Combined
Stock Price at Maturity
Profit
Put Bear Spread
Problem3
5.Create a Straddle
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1990 Call at Ask 1990
Buy 18_Oct 1990 Put at Ask 1990
Payoff Profits
St L 1990 Call L 1990 Put Combined L 1990 Call L 1990 Put Combined
1910
1930
1950
1970
1990
2010
2030
2050
2070
6.Create a Strangle
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1980 Put at Ask 1980
Buy 18_Oct 1990 Call at Ask 1990
Payoff Profits
St L 1980 Put L 1990 Call Combined L 1980 Put L 1990 Call Combined
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
2060
1940 1940 1940
1950 1950 1950
1960 1960 1960
1970 1970 1970
1980 1980 1980
1990 1990 1990
2000 2000 2000
2010 2010 2010
2020 2020 2020
2030 2030 2030
L 1980 Put
S 1990 Put
Combined
Spot Price at Maturity
Profit
Put Bull Spread
1940 1940 1940
1950 1950 1950
1960 1960 1960
1970 1970 1970
1980 1980 1980
1990 1990 1990
2000 2000 2000
2010 2010 2010
2020 2020 2020
2030 2030 2030
L 1990 Call
S 1980 Call
Combined
Profit
Spot Price at Maturity
Call Bear Spread
1940 1940 1940
1950 1950 1950
1960 1960 1960
1970 1970 1970
1980 1980 1980
1990 1990 1990
2000 2000 2000
2010 2010 2010
2020 2020 2020
2030 2030 2030
L 1990 Put
S 1980 Put
Combined
Stock Price at Maturity
Profit
Put Bear Spread
1940 1940 1940
1950 1950 1950
1960 1960 1960
1970 1970 1970
1980 1980 1980
1990 1990 1990
2000 2000 2000
2010 2010 2010
2020 2020 2020
2030 2030 2030
L 1980 Put
S 1990 Put
Combined
Spot Price at Maturity
Profit
Put Bull Spread
1940 1940 1940
1950 1950 1950
1960 1960 1960
1970 1970 1970
1980 1980 1980
1990 1990 1990
2000 2000 2000
2010 2010 2010
2020 2020 2020
2030 2030 2030
L 1990 Call
S 1980 Call
Combined
Profit
Spot Price at Maturity
Call Bear Spread
1940 1940 1940
1950 1950 1950
1960 1960 1960
1970 1970 1970
1980 1980 1980
1990 1990 1990
2000 2000 2000
2010 2010 2010
2020 2020 2020
2030 2030 2030
L 1990 Put
S 1980 Put
Combined
Stock Price at Maturity
Profit
Put Bear Spread
L 1990 Call
L 1990 Put
Combined
Stock Price at Maturity
Profit
Straddle
L 1980 Put
L 1990 Call
Combined
Stock Price at Maturity
Profit
Strangle
Problem4
7.Create a Strip
Strategy: what are you buying and selling?
Trade Strike Premium
Buy 18_Oct 1990 Call at Ask 1990
Buy TWO 18_Oct 1990 Put at Ask 1990
Payoff Profits
St L 1990 Call L 2 1990 Put Combined L 1990 Call L 2 1990 Put Combined
1890
1910
1930
1950
1970
1990
2010
2030
2050
2070
2090
8.Create a Strap
Strategy: what are you buying and selling?
Trade Strike Premium
Buy TWO 18_Oct 1990 Call at Ask 1990
Buy 18_Oct 1990 Put at Ask 1990
Payoff Profits
St L 2 1990 Call L 1990 Put Combined L 2 1990 Call L 1990 Put Combined
1890
1910
1930
1950
1970
1990
2010
2030
2050
2070
2090
L 2 1990 Call
L 1990 Put
Combined
Stock Price at Maturity
Profit
Strap
L 1990 Call
L 2 1990 Put
Combined
Spot Price at Maturity
Profit
Strip