I have attached a file where I have attempted to answer some questions pertaining to Options questions It would be appreciated if someone can check & post the correct solution if these are incorrect Thanks Howard
1) The first question appears incorrect. You should calculate the expiration-breakeven-point for each strike-price and then properly draw the P&L lines. You're comparing one-$75-strike-call to three-$85-strike-calls. You seemed to have drawn them parallel, not intersecting. What is a "point of indifference". Is that where they intersect? If so, they should crossover and not be parallel. 2) The second question regarding the short-put seems correct. I didn't look at how you calculated the earned interest of 6% for six months. You wrote "3".