Call options on a stock are available with strike prices of $15 $17.5

If all other things are considered, a change in the value of the yen from to 96 to the dollar and a change in the value of the mark from 1. Use put-call parity relationship to show that: A long position in a stock combined with a short position in a call is equivalent to short position in a put plus a certain amount of cash.

Homework #5

A short position in a put combined with a short position in a stock is equivalent to short position in a call and certain amount of investment negative cash. A long position in a put combined with long position in a stock is equivalent to lonh call and certain amount of cash.

Explain how the options can be used to create a butterfly spread.

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Construct a table showing how profit varies with stock price for the butterfly spread. When is it appropriate for the investor to purchase a bull spread? Draw a diagram to show that a bull spread created from two calls initially out of the money costs has low implementation costs.

Draw diagrams showing the variation of an investor's profit and loss with the terminal stock price of the portfolio consisting of: One share and a short position in one call option. Two shares and a short position in one call option.

One share and a short position in two call options. Recommend to me your trading strategies for corn, wheat and soybean nearby contracts using fundamental demand and supply situations and technical moving average and RSI techniques analysis.

Attach graphs and other materials to justify your answers. Homework 5 Due Date: