## Answers

Total cost of this position = $(14+13) = $27

Strike price of the option = 332.5

1)

Hence, break-even points of the position are as follows :-

Break-even price on the upside = (332.5 + 27) = 359.5

Break-even price on the downside = (332.5 - 27) = 305.5

2)

Profit from the position will be calculated by subtracting the closing price with the respective break-even price

Hence, profit if share price ends up at $400 = (400 - 359.5) = 40.5

3)

If share price ends up at $330, the position will result in a loss.

Total loss will be as follows :-

Since, closing price of 330< Strike price of 332.50, the call will expire worthless

Pay-off from Put will be = $ (332.50 - 330) = $2.50

Hence, total loss = $ (27 - 2.50) = $24.50

4)

Total Profit if stock closes at $275 = $ (305.5 - 275) = $30.5

5)

Total point of the option position = $(14+13) = $27

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