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    4 Asset Model

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    NatarajanBalasubramaniam
    The document outlines 4 potential trades involving options and stocks. The 1st trade is to sell a put option on a stock with a strike price of 7700. The 2nd trade is to buy a call option with a strike price of 7500. The 3rd trade is again to sell a put option but with the same strike price as the first of 7700. The 4th and final trade is to buy the underlying stock at a price of 7600.

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    4 Asset Model

    Uploaded by

    NatarajanBalasubramaniam
    9 views4 pages
    The document outlines 4 potential trades involving options and stocks. The 1st trade is to sell a put option on a stock with a strike price of 7700. The 2nd trade is to buy a call option with a strike price of 7500. The 3rd trade is again to sell a put option but with the same strike price as the first of 7700. The 4th and final trade is to buy the underlying stock at a price of 7600.

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    Asset Model

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    The document outlines 4 potential trades involving options and stocks. The 1st trade is to sell a put option on a stock with a strike price of 7700. The 2nd trade is to buy a call option with a strike price of 7500. The 3rd trade is again to sell a put option but with the same strike price as the first of 7700. The 4th and final trade is to buy the underlying stock at a price of 7600.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    9 views4 pages

    4 Asset Model

    Uploaded by

    NatarajanBalasubramaniam
    The document outlines 4 potential trades involving options and stocks. The 1st trade is to sell a put option on a stock with a strike price of 7700. The 2nd trade is to buy a call option with a strike price of 7500. The 3rd trade is again to sell a put option but with the same strike price as the first of 7700. The 4th and final trade is to buy the underlying stock at a price of 7600.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    1st Trade Direction

    Type of Asset

    First Asset

    2
    Buy

    Sell

    Call

    No Action

    2nd Trade Direction

    Put

    Stock

    Put

    Stock

    Put

    Stock

    Put

    Stock

    Type of Asset

    Second Asset
    Buy

    Sell

    Call

    No Action

    2
    Type of Asset

    3rd Asset Direction

    Third Asset
    Buy

    Sell

    No Action

    Call

    Type of Asset

    4th Asset Direction

    Fourth Asset

    Buy

    Sell

    No Action

    Call

    Payoff
    120000
    100000
    80000
    60000
    40000
    20000
    0
    7400
    -20000
    -40000

    7500

    7600

    7700

    7800

    7900

    Exercise Price
    Purchase Price

    Number
    of Lots

    Premium Lot Size

    2 SELLPUT

    7700

    195.65

    100

    1 BUYCALL

    7500

    186

    100

    2 SELLPUT

    7700

    195.65

    100

    3 BUYSTOCK

    7600

    100

    7500
    7550
    7600
    7650
    7700
    7750
    7800
    7850
    7900
    7950
    8000

    Spot Prices
    7500
    7550
    7600
    7650
    7700
    7750
    7800
    7850
    7900
    7950
    8000

    Payoff

    8000

    8100

    BUYCALL
    186.00
    159.65
    132.75
    109.85
    88.65
    71.95
    55.95
    45.00
    33.45
    25.80
    18.70

    SELLCALL
    BUYPUT
    SELLPUT
    BUYSTOCK
    SELLSTOCK
    No Action
    184.55
    97.60
    97.30
    0.00
    0.00
    0.00
    157.00
    118.80
    117.30
    0.00
    0.00
    0.00
    132.10
    141.45
    140.90
    0.00
    0.00
    0.00
    109.10
    167.80
    167.00
    0.00
    0.00
    0.00
    88.10
    196.00
    195.65
    0.00
    0.00
    0.00
    70.50
    227.55
    224.20
    0.00
    0.00
    0.00
    55.85
    262.20
    260.05
    0.00
    0.00
    0.00
    43.20
    366.60
    286.10
    0.00
    0.00
    0.00
    33.30
    341.40
    336.10
    0.00
    0.00
    0.00
    24.90
    397.80
    361.60
    0.00
    0.00
    0.00
    18.55
    423.00
    420.20
    0.00
    0.00
    0.00
    SELLPUT
    First Asset Profit
    -435
    4565
    9565
    14565
    19565
    19565
    19565
    19565
    19565
    19565
    19565

    BUYCALL
    Second Asset Profit
    -18600
    -13600
    -8600
    -3600
    1400
    6400
    11400
    16400
    21400
    26400
    31400

    SELLPUT
    Third Asset Profit
    -435
    4565
    9565
    14565
    19565
    19565
    19565
    19565
    19565
    19565
    19565

    BUYSTOCK
    Fourth Asset Profit
    -10000
    -5000
    0
    5000
    10000
    15000
    20000
    25000
    30000
    35000
    40000

    Total Profit
    -29470
    -9470
    10530
    30530
    50530
    60530
    70530
    80530
    90530
    100530
    110530

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