matthew4152000
New member
1.Let S(t) be the price of a given security at time t. All of the following options have exercise time t and (unless stated otherwise) exercise price K. Give the payoff at time t that is earned by an investor who
(a)owns one call option and one put option.
(b)owns one call having an exercise price K1 and has sold one put having exercise price K2
(c) owns two calls and has sold short one share of the security
(d) owns one share of the security and has sold one call
(a)owns one call option and one put option.
(b)owns one call having an exercise price K1 and has sold one put having exercise price K2
(c) owns two calls and has sold short one share of the security
(d) owns one share of the security and has sold one call