53 lines
1.4 KiB
Plaintext
53 lines
1.4 KiB
Plaintext
536A COMPleTe gUIde TO THe FUTUreS MArKeT
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tabLe 35.19a profit/Loss Calculations: bear Call Money Spread (Short Call with Lower Strike price/
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Long Call with higher Strike price); Case 1—both Calls In-the-Money
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(1) (2) (3) (4) (5) (6) (7) (8)
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Futures price
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at expiration
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($/oz)
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premium of
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august $1,150
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Call ($/oz)
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$ amount
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of premium
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paid
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premium of
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august $1,100
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Call ($/oz)
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$ amount
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of premium
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received
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$1,150 Call
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Value at
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expiration
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$1,100 Call
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Value at
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expiration
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profit/Loss on
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position
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[(5) − (3) + (6) − (7)]
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1,000 70.1 $7,010 110.1 $11,010 $0 $0 $4,000
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1,050 70.1 $7,010 110.1 $11,010 $0 $0 $4,000
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1,100 70.1 $7,010 110.1 $11,010 $0 $0 $4,000
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1,150 70.1 $7,010 110.1 $11,010 $0 $5,000 –$1,000
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1,200 70.1 $7,010 110.1 $11,010 $5,000 $10,000 –$1,000
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1,250 70.1 $7,010 110.1 $11,010 $10,000 $15,000 –$1,000
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1,300 70.1 $7,010 110.1 $11,010 $15,000 $20,000 –$1,000
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1,350 70.1 $7,010 110.1 $11,010 $20,000 $25,000 –$1,000
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1,400 70.1 $7,010 110.1 $11,010 $25,000 $30,000 –$1,000
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Price of August gold futures at option expiration ($/oz)
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Profit/loss at expiration ($)
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1,000
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3,750
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5,000
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2,500
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0
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−1,250
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1,250
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1,050 1,100 1,150 1,200 1,250
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Breakeven price = $1,140
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1,300 1,350 1,400
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Futures price at time
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of position initiation
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FIGURE 35.19a Profi t/loss Profi le: Bear Call Money Spread (Short Call with lower Strike
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Price/long Call with Higher Strike Price); Case 1—Both Calls In-the-Money |