Sell $100 notional of European calls at a strike of 5400 (price $5 per $100 notional)
Buy $100 notional of European calls at a strike of 5100 (price $3 per $100 notional)
Sell $100 notional of European calls at a strike of 6600 (price $4 per $100 notional)
Buy $100 notional of European calls at a strike of 6900 (price $3 per $100 notional)
The options are all written with a one year term on the same equity index, the current value of which is 6000. Dividends are ignored.
Plot a chart for each of these strategies that shows the value of the portfolio after one year.
Buy $100 notional of European calls at a strike of 5100 (price $3 per $100 notional)
Sell $100 notional of European calls at a strike of 6600 (price $4 per $100 notional)
Buy $100 notional of European calls at a strike of 6900 (price $3 per $100 notional)
The options are all written with a one year term on the same equity index, the current value of which is 6000. Dividends are ignored.
Plot a chart for each of these strategies that shows the value of the portfolio after one year.