Question

Apple stock is currently selling at 200$. You purchase a 30 day call with a strike...

Apple stock is currently selling at 200$. You purchase a 30 day call with a strike price of 200$ for 18$ and 30 day put for the same strike price for 20$.

What are your total losses or gain at prices $190, $200, and $210?

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Answer #1

Call option Pay off and Profit can be calculated with following equations -

Put option Pay off and Profit can be calculated with following equations -

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

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