Overview
Question 1. Create a call option payoff diagram in the “Question 1” tab for a case of buying 10 call options. The strike price is $60, and the option premium is $3.50 for each option. First, you’ll need to fill in the “profit” column for 10 options, and then create a line chart showing the profit diagram.
You are analyzing a potential put option trade on Hedwig Corp. Let’s say your research has led you to believe that the stock will be worth $25 per share in two months (it’s currently $50). You have $9,000 to trade on your research, and the put options you are considering are shown below: CHART WILL BE ATTACHED IN THE PICTURE FILE* How much money will you have if you buy the $45 strike price put option? What about put options with a $30 strike price?
The excel sheet is also attached. Thank You!