Create a call option payoff diagram in the “Question 1” tab for a case of buying 10 call options. The strike price is $60, and the option premium is $3.50 for each option. First, you’ll need to fill...

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Create a call option payoff diagram in the “Question 1” tab for a case of buying 10 call options. The
strike price is $60, and the option premium is $3.50 for each option.
First, you’ll need to fill in the “profit” column for 10 options, and then create a line chart showing the
profit diagram.
Question 2
You are analyzing a potential put option trade on Hedwig Corp. Let’s say your research has led you to
believe that the stock will be worth $25 per share in two months (it’s currently $50). You have $9,000 to
trade on your research, and the put options you are considering are shown below:
Strike Price Bid Price Ask Price
$45.00 $8.67 $8.91
$30.00 $0.12 $0.15
How much money will you have if you buy the $45 strike price put option? What about put options with
a $30 strike price?


Question 1 Strike Price (K) Option Premium per option Ending Stock PriceProfit $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 $70.00 $75.00 $80.00 $85.00 $90.00 $95.00 $100.00 $105.00 $110.00 $115.00 $120.00 $125.00 $130.00 $135.00 $140.00 $145.00 $150.00 Question 2 Stock Price Today$50.00 Money to invest$9,000 Stock Price in 2 months$0.00 Buy $45 strike Put OptionBuy $30 strike Put Option
Answered 2 days AfterSep 29, 2022

Answer To: Create a call option payoff diagram in the “Question 1” tab for a case of buying 10 call options....

Prince answered on Oct 02 2022
57 Votes
Question 1
        Strike Price (K)
        Option Premium per option
        Ending Stock...
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