question archive Problem 1/ For risk management purposes, “Bayan” decided to undertake a strategy consisting of selling a put with a strike price of 22
Problem 1/ For risk management purposes, “Bayan” decided to undertake a strategy consisting of selling a put with a strike price of 22
Subject:FinancePrice:2.86 Bought35
Problem 1/ For risk management purposes, “Bayan” decided to undertake a strategy consisting of selling a put with a strike price of 22.1098 for 2.11, selling a put with a strike price of 18.2451 for 0.56, and buy two puts with a strike price of 20.8931 for a total of 2.2488. She entered this position with 5000 contracts each contract containing 100 strategies that would expire in 3 months from now.
A/ What is the amount of her max loss?
QUESTION 2
b/ What is her gain/loss if the stock price in 3 months is 19.145?
-67,910
18,982
-56,238
88,717
47,630
19,872
QUESTION 3
c/ What is her gain/loss if the stock price in 3 months is higher than the medium strike price by 350 basis points?
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