Financial Modelling and Derivatives
Assignment 2 – Data Set 3
1. Considering the mentioned strategy, the maximum profit possible is €500,00, in
case the stock price in the maturity of the option is €50,00. In order not to have
loss, the stock price must be between €45,00 and €55,00 in the option maturity.
The following graphs show the results of each position. Graphs 1 and 2 show,
respectively, the result of a single option as function of the stock price in the
Assignment 2 – Data Set 3
1. Considering the mentioned strategy, the maximum profit possible is €500,00, in
case the stock price in the maturity of the option is €50,00. In order not to have
loss, the stock price must be between €45,00 and €55,00 in the option maturity.
The following graphs show the results of each position. Graphs 1 and 2 show,
respectively, the result of a single option as function of the stock price in the
