0 5 10 15 15.

84
Stock -15.84 -10.84 -5.84 -0.84 0
Put 15 10 5 0 0
Put Premium -1.46 -1.46 -1.46 -1.46 -1.46

-2.3 -2.3 -2.3 -2.3 -1.46

Profit
Expiration Value
Max Gain
Max Loss
Break Even Point

Par Value 1000 1000

Cou[pon Rate 8% 80
Maturity 3 yrs 3

Find PV or Price of the bond if Market interest rate is 7% , 8% and 9%

7% 8%
-$1,026.24 -$1,000.00

$1,026.24 $1,000.00

Duration
$26.24

9.302137842824
 0.026243160444

#REF!
#REF!

Writing Cash - Secured Puts

Short on Put
Invest exercise amount in RF Securities

50

0 5 10 15
1.76 1.76 1.76 1.76
-17 -12 -7 -2
-15.24 -10.24 -5.24 -0.24
 0 10 15 15.84 16
Stock -15.84 -5.84 -0.84 0 0.16
Put 15 5 0 0 0
Put Premium -1.46 -1.46 -1.46 -1.46 -1.46
-2.3 -2.3 -2.3 -1.46 -1.3

St=So+Po 17.3 Break Even Point

Profit St + max (0,X-St) - So - Po 0
Expiration Value St + max (0,X-St)
Max Gain Unlimited
Max Loss -So - Po + X So+Po-X
 16 17 17.3 20 25
0.16 1.16 1.46 4.16 9.16
0 0 0 0 0
-1.46 -1.46 -1.46 -1.46 -1.46

-1.3 -0.3 0 2.7 7.7

St-So-Po=0
St=So+Po
17.3

St + max (0,X-St) - So - Po
St + max (0,X-St)
Unlimited
-So - Po + X So+Po-X

9%
-$974.69
Duration= Value when interst rate is down - Value Rates goes up
$974.69

$25.31 2.577805355202
$0.00

$1,000.00 $1,000.00
 0

Write Sep 17 Put at 1.76

Profit
Expiration Value
Max Gain
Max Loss
Break Even Point

15.24 17 18 19
1.76 1.76 1.76 1.76
-1.76 0 0 0
0 1.76 1.76 1.76

Max Profit Po
Po-X+St=0 Max Loss X-P0
ST=X-P0 Expiration Value -max(0,X-St)
15.24 Profit -max(0,X-St) + Po
 20
4.16
0
-1.46
2.7
- Value Rates goes up
Covered Call+Protective Put

So=12 P=15 Po=1.46

C=17 Co=1.44

0 10 12 15 17 20
-12 -2 0 3 5 8
Long Put 15 5 3 0 0 0
Po -1.46 -1.46 -1.46 -1.46 -1.46 -1.46
Short Call 0 0 0 0 0 -3
Co 1.44 1.44 1.44 1.44 1.44 1.44
2.98 2.98 2.98 2.98 4.98 4.98

Same strike collar So=12 Put=12 Call=12 Po=1.44 Co=1.44

0 5 10 12 15 20

Long Put 12 7 2 0 0 0

Short Call 0 0 0 0 -3 -8

12 12 12 12 12 12
V 100000000
DY 2.50%
Q 4000
F 10
QF 40000
Rf 5%
Time 0.25

Nf 2531
MV 101240000
I 100012622
No of units at maturity 25310
No.of units today 25154
 15.84

0 10 15 15.84 16
-15.84 -8.84 -0.84 0 0.16

-1.46 -1.46 -1.46 -1.46 -1.46

 16

20
4.16

-1.46