What is the initial cash flow for the iron condor position

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Reference no: EM132021219

You enter into an iron condor position on GOOG by entering into four June 2018 option positions. The current GOOG stock price is $1160 per share. The iron condor position includes a long put at $1120 which has a premium of $32, a short put at $1140 with a premium of $39, a short call at $1180 for $49, and a long call at $1200 for $41. What is the initial cash flow for the iron condor position (i.e., the net cash flow from the premium payments)? What is the profit (loss) if the June GOOG spot price is $1130? What about $1170? What about $1250?

Reference no: EM132021219

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