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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?


To: notredame who wrote (1350)4/20/1999 6:54:00 PM
From: Dave.S  Read Replies (2) | Respond to of 1598
 
NotreDame:

Write OCT 20 Put proceeds =9.45
Write OCT 20 Call proceeds =9.15

Total receipts $18.60
If BII=0 then loss is: $1.40 (Put is exercised)
If BII=40 then loss is: $40 - Strike Price of Call ($20) - $18.60 = $1.40 (Call is exercised)

A profit is realized if the stock is between $1.40 and $38.60 at the October expiry.

Dave