Problem:
Consider the following information on put and call options for Citigroup.
|
Strike Price
|
Put Price
|
Call Price
|
|
$32.50
|
$2.85
|
$1.65
|
Required:
Question 1: Calculate the net value of a protective put position at a stock price at expiration of $20.
Question 2: Calculate the net value of a covered call position at a stock price at expiration of $45.
Question 3: Calculate the payoffs of a short straddle at a stock price at expiration of $20 and a stock price at expiration of $45.
Note: Please show guided help with steps and answer.