You run a mutual fund and you have decided that the most


You run a mutual fund and you have decided that the most that Sears stock is worth is $20 and you plan on selling the stock when it reaches that point. What option strategy could you take to make a profit on your planned trade?

Using the following information calculate the portfolio value on the exercise date and the profit from your strategy.

Stock Price Today = $18.22

Strike Price = $20

Call Price = $2.54

Put Price = $3.35

Scenario 1. Sears’ stock price rises to $25 on the exercise date.

Scenario 2. Sears’ stock price falls to $15 on the exercise date.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You run a mutual fund and you have decided that the most
Reference No:- TGS01465905

Expected delivery within 24 Hours