Question

Consider an options trader who sets up a condor trading strategy on Boston Scientific Corp. stock. The option trader buys a call option with a strike price of $25, sells a call option with a strike price of $30, sells a call option with a strike price of $40, and buys a call option with a strike price of $45.

Complete the table below with the correct formulas to show the profit/loss for different values of the stock price at the expiration of the options.

Call option	1	2	3	4
Strike price	$25	$30	$40	$45
Option price	$14.05	$9.70	$3.15	$1.38
	Call option
Stock price	1	2	3	4	Profit/Loss
$0	-$14.05	$9.70	$3.15	-$1.38	-$2.58
$1					$0.00
$2					$0.00
$3					$0.00
$4					$0.00
$5					$0.00
		^^THROUGH^^

$50

$0.00

Answer 1

	Strike
Price	25	30	40	45	P/L
0	-14.05	9.7	3.15	-1.38	-2.58
1	-14.05	9.7	3.15	-1.38	-2.58
2	-14.05	9.7	3.15	-1.38	-2.58
3	-14.05	9.7	3.15	-1.38	-2.58
4	-14.05	9.7	3.15	-1.38	-2.58
5	-14.05	9.7	3.15	-1.38	-2.58
6	-14.05	9.7	3.15	-1.38	-2.58
7	-14.05	9.7	3.15	-1.38	-2.58
8	-14.05	9.7	3.15	-1.38	-2.58
9	-14.05	9.7	3.15	-1.38	-2.58
10	-14.05	9.7	3.15	-1.38	-2.58
11	-14.05	9.7	3.15	-1.38	-2.58
12	-14.05	9.7	3.15	-1.38	-2.58
13	-14.05	9.7	3.15	-1.38	-2.58
14	-14.05	9.7	3.15	-1.38	-2.58
15	-14.05	9.7	3.15	-1.38	-2.58
16	-14.05	9.7	3.15	-1.38	-2.58
17	-14.05	9.7	3.15	-1.38	-2.58
18	-14.05	9.7	3.15	-1.38	-2.58
19	-14.05	9.7	3.15	-1.38	-2.58
20	-14.05	9.7	3.15	-1.38	-2.58
21	-14.05	9.7	3.15	-1.38	-2.58
22	-14.05	9.7	3.15	-1.38	-2.58
23	-14.05	9.7	3.15	-1.38	-2.58
24	-14.05	9.7	3.15	-1.38	-2.58
25	-14.05	9.7	3.15	-1.38	-2.58
26	-13.05	9.7	3.15	-1.38	-1.58
27	-12.05	9.7	3.15	-1.38	-0.58
28	-11.05	9.7	3.15	-1.38	0.42
29	-10.05	9.7	3.15	-1.38	1.42
30	-9.05	9.7	3.15	-1.38	2.42
31	-8.05	8.7	3.15	-1.38	2.42
32	-7.05	7.7	3.15	-1.38	2.42
33	-6.05	6.7	3.15	-1.38	2.42
34	-5.05	5.7	3.15	-1.38	2.42
35	-4.05	4.7	3.15	-1.38	2.42
36	-3.05	3.7	3.15	-1.38	2.42
37	-2.05	2.7	3.15	-1.38	2.42
38	-1.05	1.7	3.15	-1.38	2.42
39	-0.05	0.7	3.15	-1.38	2.42
40	0.95	-0.3	3.15	-1.38	2.42
41	1.95	-1.3	2.15	-1.38	1.42
42	2.95	-2.3	1.15	-1.38	0.42
43	3.95	-3.3	0.15	-1.38	-0.58
44	4.95	-4.3	-0.85	-1.38	-1.58
45	5.95	-5.3	-1.85	-1.38	-2.58
46	6.95	-6.3	-2.85	-0.38	-2.58
47	7.95	-7.3	-3.85	0.62	-2.58
48	8.95	-8.3	-4.85	1.62	-2.58
49	9.95	-9.3	-5.85	2.62	-2.58
50	10.95	-10.3	-6.85	3.62	-2.58

Formula of above is given below

	Strike
Price	25	30	40	45	P/L
0	MAX(($A3-B$2),0)-14.05	.- (MAX(($A3-C$2),0)-9.7)	.-(MAX(($A3-D$2),0)-3.15)	MAX(($A3-E$2),0)-1.38	SUM(B3:E3)