You simultaneously write a covered put and buy a protective call, both with strike prices of $40, on stock that you have shorted at $40.
What are the expiration date payoffs to this position for stock prices of $30, $35, $40, $45, and $50?
(Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "tiny_mce_markerquot; sign in your response.)
| Stock Price |
Short Profit |
|
Short Put Payoff |
|
Protective Call Payoff |
|
Total Payoff |
| $30 |
|
$ |
|
$ |
|
$ |
|
$ |
| $35 |
|
$ |
|
$ |
|
$ |
|
$ |
| $40 |
|
$ |
|
$ |
|
$ |
|
$ |
| $45 |
|
$ |
|
$ |
|
$ |
|
$ |
| $50 |
|
$ |
|
$ |
|
$ |
|
$ |