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What is your payoff

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Reference no: EM132967739

Question - Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $50 and $89 for $5.85 and $1.13, respectively, and sold two call options with a strike price of $69.5 for $2.77 each.

1. What is your payoff if the stock price is $79.25 on the expiration date?

2. What is your profit if the stock price is $79.25 on the expiration date?

3. What is your payoff if the stock price is $59.75 on the expiration date?

4. What is your profit if the stock price is $59.75 on the expiration date?

Reference no: EM132967739

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