Options Questions

Discussion in 'Options' started by howard101, Sep 21, 2009.

  1. howard101


    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


  2. 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". :cool:
  3. spindr0


    That's how I feel when someone posts their homework assignment :)
  4. Markets need new participants from time to time. :cool:
  5. spindr0


    I guess you're not a vegetarian...

    (fresh meat)