Followings are the strike prices and the relevant options prices for both put and call...
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Followings are the strike prices and the relevant options prices for both put and call options. All options are of same maturity
Strike Price Option Price
In $ call Option Put Option
30 $3.5 $1.1
Suppose that an investor is interested to construct a straddle using the in information. If the market price of underling at maturity is $50, complete the table below?
Option Position ST K f (premium, price,value) Net Pay off
long call $50 $(fill in) $(fill in) $(fill in)
long put $50 $(fill in) $(fill in) $(fill in)
Strategy cost $(fill in)
Strategy Pay off $(fill in)
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