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Topic: options trading

espoir
New Member

Rate Member

posted

Hi,

Would someone help me solve these problems?

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!

Posts: 2 | Registered: Jan 2009 | IP: Logged |

jgrecoconstr
Member

posted

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.

Please notify me here of any major prize I may have won.

Posts: 492 | From: new york | Registered: Jul 2005 | IP: Logged |

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