Suppose you buy one SPX call option with a strike of 1400 and write one SPX put option with a strike of 1400. What are the payoffs at maturity to this position for S& P 500 Index levels of 1300, 1350, 1400, 1450, and 1500?© BrainMass Inc. brainmass.com October 10, 2019, 4:44 am ad1c9bdddf
Buying a call at 1400 means that you can, at maturity, buy one SPX at 1400.
Write a put at 1400 means that at maturity, you may sell one SPX at 1400.
If S&P hits 1300 at the end of your ...
This solution contains step-by-step calculations and instructions to determine the profits of a call option.