1. Show the expiration diagram of a long combination when Kc=50 and Kp=55. Assume S=52.5, C=3.5, P=3.5. Show Max π; Max loss and BEP(S)
2. What is the difference between this combination and the OTM combination?
3. Under what market condition would you establish this strategy?
Thanks in advance for your help!
Posted by jgrecoconstr on :
OK I'll go first....... #1. 50 (x) r to the third power or 150(q)(squared) #2. Not good with combinations, I usually use a padlock. #3. Down market for sure.
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