Ningbo Industrial Concepts Incorporated             Initial stock price $115.00             Exercise price $115.00             Call price $4.75             Put Price $4.50                             Required:               Using the information in the table above, please calculate dollar value of the following option strategies. Use this calculated dollar value to determine the profit of each strategy at various stock prices.                 (Use cells A3 to B6 from the given information to complete this question. Negative answer should be input and displayed as a negative value. All other answers should be input and displayed as positive values.)                   Ningbo Industrial Concepts Incorporated Dollar Value of Strategy as a Function of Current Stock Price     Strategy $95.00 $105.00 $115.00 $125.00 $135.00     Straddle               Strip               Strap                               Ningbo Industrial Concepts Incorporated Rate of Return as a Function of Current Stock Price     Straddle               Strip               Strap

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Ningbo Industrial Concepts Incorporated            
Initial stock price $115.00            
Exercise price $115.00            
Call price $4.75            
Put Price $4.50            
               
Required:              
Using the information in the table above, please calculate dollar value of the following option strategies. Use this calculated dollar value to determine the profit of each strategy at various stock prices.
               
(Use cells A3 to B6 from the given information to complete this question. Negative answer should be input and displayed as a negative value. All other answers should be input and displayed as positive values.)  
               
Ningbo Industrial Concepts Incorporated Dollar Value of Strategy as a Function of Current Stock Price    
Strategy $95.00 $105.00 $115.00 $125.00 $135.00    
Straddle              
Strip              
Strap              
               
Ningbo Industrial Concepts Incorporated Rate of Return as a Function of Current Stock Price    
Straddle              
Strip              
Strap              
               
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