Financial Derivatives

FIN3201
ASSIGNMENT ON
CALL & PUT OPTION

GROUP MEMBERS
17221026
17221036
17221046
17221054
17221090
 LONG CALL OPTION

Exercise Price $45.00

Option Price $8.00

Spot Price Payoff Profit

0 0 -8
5 0 -8
10 0 -8
15 0 -8 60
20 0 -8
50
25 0 -8
30 0 -8 40

35 0 -8 30
40 0 -8
20
45 0 -8
50 5 -3 10
55 10 2
0
60 15 7 0 5 10 15 20 25 30 35 4
65 20 12 -10
70 25 17
-20
75 30 22
80 35 27
85 40 32
90 45 37
95 50 42
100 55 47
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

Payoff Profit
 SHORT CALL OPTION

Exercise Price $45.00

Option Price $8.00

Spot Price Payoff Profit

0 0 8
5 0 8
10 0 8
15 0 8 20
20 0 8
10
25 0 8
30 0 8 0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 9
35 0 8 -10
40 0 8
45 0 8 -20

50 -5 3 -30
55 -10 -2
-40
60 -15 -7
65 -20 -12 -50
70 -25 -17
-60
75 -30 -22
Payoff Profit
80 -35 -27
85 -40 -32
90 -45 -37
95 -50 -42
100 -55 -47
50 55 60 65 70 75 80 85 90 95 100

Profit
 LONG PUT OPTION

Exercise Price $45.00

Option Price $8.00

Spot Price Payoff Profit

0 45 37
5 40 32
10 35 27
15 30 22 50
20 25 17
40
25 20 12
30 15 7 30
35 10 2
40 5 -3 20

45 0 -8
10
50 0 -8
55 0 -8 0
60 0 -8 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
-10
65 0 -8
70 0 -8 -20
75 0 -8
Payoff Profit
80 0 -8
85 0 -8
90 0 -8
95 0 -8
100 0 -8
 50 55 60 65 70 75 80 85 90 95 100

ff Profit
 SHORT PUT OPTION

Exercise Price $45.00

Option Price $8.00

Spot Price Payoff Profit

0 -45 -37
5 -40 -32
10 -35 -27
15 -30 -22 20
20 -25 -17
10
25 -20 -12
30 -15 -7 0
35 -10 -2 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
40 -5 3 -10

45 0 8
-20
50 0 8
55 0 8 -30
60 0 8
-40
65 0 8
70 0 8 -50
75 0 8
Payoff Profit
80 0 8
85 0 8
90 0 8
95 0 8
100 0 8
 50 55 60 65 70 75 80 85 90 95 100

ff Profit