950 
-if using call bull spread and put bear spread ( Ch. 23) 
R = P2 + c2 - PI - c3 - s3 + s2 
Then 
P = s3 - s2 - R or R = s3 - s2 - P 
D =SI+ R 
U = S3-R 
Combination Buy (Ch. 18) 
S1 < S2 
Out-of-the-money: R = c2 + PI 
In-the-money: R = cI + p2 - s2 + sI 
D = SI -P 
U = s2 + P 
Combination Sale (Ch. 20) 
Out-of-the-money: P = c2 + PI 
In-the-money: P = cI + P2 - s2 + sI 
D = sI -P 
X 
s 
C 
p 
current stock price 
striking price 
call price 
put price 
r interest rate 
t = time ( in years) 
f futures price 
U = s2 + P 
B 
u 
D 
p 
R 
break-even point 
upside break-even point 
downside break-even point 
maximum profit potential 
maximum risk potential 
Appendix C 
Subscripts indicate multiple items. For example s1, s2, s3 would designate three striking prices in a formula. 
The formulae are arranged alphabetically by title or by strategy.