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please help with part G and H

g. Assume Investor Casey is optimistic that a vaccine for COVID-19 will be found soon, thus has estimated the following probabilities pertaining to the S&P performance: 16% that S&P falls below the low strike price, X1, so Casey pays Sam; 71% that the S&P remains between the strike prices, so Casey makes no payment; and 13% that the S&P will move at and above the higher strike price, X. so Sam pays Casey. Graph the lognormal probability distribution, with the S&P index movements represented on the x-axis and the probability of investment returns on the y-axis. (NOTE: Probability distributions and profit-loss diagrams are different, but they arguably convey similar information.) h. What is the total probability that the S&P will fall below the higher strike price? 1. Is your answer in part h more likely to represent the delta for the put option at X (part e) or the call option at Xz (part 1)? Explain your logic, then compute the delta for the corresponding option at that point. SHOW YOUR WORK J. Based upon the probability that no payment is made, what can be inferred about the gammas for options X1 and X2? k. Place check marks in the appropriate boxes in the following table: Bearish Spread Type Sam Makes Initial Sam Receives Bullish Net Payment Net Premium Put Debit Spread Call Debit Spread Put Credit Spread Call Credit Spread 1. Because Sam is bearish, which type of spreads (from part k) would he use to enter into an arrangement with Casey? (What are the types of spreads you drew in parte and part t?) m. Which spread type would Casey be likely to require? Explain your logic. g. Assume Investor Casey is optimistic that a vaccine for COVID-19 will be found soon, thus has estimated the following probabilities pertaining to the S&P performance: 16% that S&P falls below the low strike price, X1, so Casey pays Sam; 71% that the S&P remains between the strike prices, so Casey makes no payment; and 13% that the S&P will move at and above the higher strike price, X2, so Sam pays Casey. Graph the lognormal probability distribution, with the S&P index movements represented on the x-axis and the probability of investment returns on the y-axis. (NOTE: Probability distributions and profit-loss diagrams are different, but they arguably convey similar information.) h. What is the total probability that the S&P will fall below the higher strike price? i. Is your answer in part h more likely to represent the delta for the put option at X2 (part e) or the call option at X2 (part f)? Explain your logic, then compute the delta for the corresponding option at that point. SHOW YOUR WORK. j. Based upon the probability that no payment is made, what can be inferred about the gammas for options X, and X2? k. Place check marks in the appropriate boxes in the following table: Spread Type Sam Makes Initial Sam Receives Bullish Bearish Net Payment Net Premium Put Debit Spread Call Debit Spread Put Credit Spread Call Credit Spread 1. Because Sam is bearish, which type of spreads (flom part k) would he use to enter into an arrangement with Casey? (What are the types of spreads you drew in parte and part f?) m Which spread tyne would Casey be likely to require? Explain your logic. g. Assume Investor Casey is optimistic that a vaccine for COVID-19 will be found soon, thus has estimated the following probabilities pertaining to the S&P performance: 16% that S&P falls below the low strike price, X1, so Casey pays Sam; 71% that the S&P remains between the strike prices, so Casey makes no payment; and 13% that the S&P will move at and above the higher strike price, X. so Sam pays Casey. Graph the lognormal probability distribution, with the S&P index movements represented on the x-axis and the probability of investment returns on the y-axis. (NOTE: Probability distributions and profit-loss diagrams are different, but they arguably convey similar information.) h. What is the total probability that the S&P will fall below the higher strike price? 1. Is your answer in part h more likely to represent the delta for the put option at X (part e) or the call option at Xz (part 1)? Explain your logic, then compute the delta for the corresponding option at that point. SHOW YOUR WORK J. Based upon the probability that no payment is made, what can be inferred about the gammas for options X1 and X2? k. Place check marks in the appropriate boxes in the following table: Bearish Spread Type Sam Makes Initial Sam Receives Bullish Net Payment Net Premium Put Debit Spread Call Debit Spread Put Credit Spread Call Credit Spread 1. Because Sam is bearish, which type of spreads (from part k) would he use to enter into an arrangement with Casey? (What are the types of spreads you drew in parte and part t?) m. Which spread type would Casey be likely to require? Explain your logic. g. Assume Investor Casey is optimistic that a vaccine for COVID-19 will be found soon, thus has estimated the following probabilities pertaining to the S&P performance: 16% that S&P falls below the low strike price, X1, so Casey pays Sam; 71% that the S&P remains between the strike prices, so Casey makes no payment; and 13% that the S&P will move at and above the higher strike price, X2, so Sam pays Casey. Graph the lognormal probability distribution, with the S&P index movements represented on the x-axis and the probability of investment returns on the y-axis. (NOTE: Probability distributions and profit-loss diagrams are different, but they arguably convey similar information.) h. What is the total probability that the S&P will fall below the higher strike price? i. Is your answer in part h more likely to represent the delta for the put option at X2 (part e) or the call option at X2 (part f)? Explain your logic, then compute the delta for the corresponding option at that point. SHOW YOUR WORK. j. Based upon the probability that no payment is made, what can be inferred about the gammas for options X, and X2? k. Place check marks in the appropriate boxes in the following table: Spread Type Sam Makes Initial Sam Receives Bullish Bearish Net Payment Net Premium Put Debit Spread Call Debit Spread Put Credit Spread Call Credit Spread 1. Because Sam is bearish, which type of spreads (flom part k) would he use to enter into an arrangement with Casey? (What are the types of spreads you drew in parte and part f?) m Which spread tyne would Casey be likely to require? Explain your logic

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