HW10 - Buy one Dec 55 strike call at $3.10 Buy one Dec 55...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Purdue University Krannert School of Business MGMT 411: INVESTMENTS Assignment #10, Due: Dec 1 No late assignments will be accepted. Example: Stock is trading at $55 Outlook: You anticipate a big move either up or down over the next 10 days. Possible strategy: Buy a Straddle
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Buy one Dec 55 strike call at $3.10 Buy one Dec 55 strike put at $3.05 Suppose that these are possible outcomes at expiration: Stock Price in December Long 55 Call - Cost Long 55 Put - Cost Net Profit 45 50 55 60 65 Fill in the empty cells in the table....
View Full Document

This note was uploaded on 02/06/2012 for the course MGMT 411 taught by Professor Clarke during the Spring '09 term at Purdue.

Ask a homework question - tutors are online