Stock: Hop
# of Shares: 375,000
Stock Price: $26.20
September 25.00 Put Price: $0.80.
September 27.50 Call Price: $0.65.
Based on the provided data only, what is the breakeven price for
1) Protective Put
2) Covered call
3) Collar
What's common among those strategies?作者: zwjy 时间: 2011-7-13 17:12
No one take this? It's part of an EOC question.作者: mik82 时间: 2011-7-13 17:12
1）27
2）25.55
3）26.35
common is they all have bounded profit or loss.
for the collar, the middle part is a horizontal line which is the option price difference of the X_line. while, the underlying is a 45*line and you just have it realize the price differential profit.作者: Analti_Calte 时间: 2011-7-13 17:12
deriv108 Wrote:
-------------------------------------------------------
> Stock: Hop
> # of Shares: 375,000
> Stock Price: $26.20
> September 25.00 Put Price: $0.80.
> September 27.50 Call Price: $0.65.
>
> Based on the provided data only, what is the
> breakeven price for
>
> 1) Protective Put
> 2) Covered call
> 3) Collar
>
> What's common among those strategies?
A protective put is long a stock and pujt option
coveread call u are long a stock and short a call option
collar is a protective put that you fund by being short a call作者: Iginla2011 时间: 2011-7-13 17:12
I agree with all of you.
All of them also have the underlying stock. In this case, the breakeven price is the initial net payment. Besides, "S0" is shown in max profit, max loss and breakeven price.
If no underlying stock in the strategy, no "S0" is shown in the Max profit, Max loss and Breakeven price.
I'll call it "Stock Check": no stock, no S0.
Edited 1 time(s). Last edit at Friday, April 8, 2011 at 03:54PM by deriv108.作者: NakedPuts00 时间: 2011-7-13 17:12
I posted this because I incorrectly used X to compute B.E. price for protective put.
