1. Business
  2. Finance
  3. assume you are buying stock in exxon you buy a...

Question: assume you are buying stock in exxon you buy a...

Question details

Assume you are buying stock in Exxon. You buy a share of stock at 77.39, and a put option at 75 for 3.95. You sell a call option at 80 for 2.80. You hold your portfolio until the expiration date. On the expiration date you cash out your portfolio. Using excel, graph the profits of your strategy as the price of Exxon stock at the expiration date goes from 50 to 100. (Your graph should include at least 50 data points and a table explaining each data point.)

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution