Using the provided Excel spreadsheet as template (you can use a different template as well), please plot the profit diagram for each one of your five selected strategies. Recall that to calculate profits you must reduce the option premiums from your overall payoffs (same as we have done in class).
1. Please include a screenshot of the option chains (list of prices) showing the actual option strikes, expiration and premiums (prices) you are selecting for your project.
2. Please include a screenshot showing the stock price at that time and the date when you get this information. This date is the date of formation of your strategies.
3. What are the stock prices that result in your maximum gain and maximum loss? What is the maximum profit and maximum loss?
4. Plot profit diagram keeping in mind you can only buy/sell options in contracts controlling 100 shares each. Thus, always make this final adjustment by multiplying by 100 as learned in class. Please use a different sheet for each strategy.
*Keep in mind you will be using the real values from real options (you can get the information from any source. For instance:https://finance.yahoo.com/quote/TSLA/options/).
5. A sample spreadsheet is attached for your convenience. It is the same solved during class and uploaded to the Module of Week 10, Chapter 8, under Class Notes and Recordings). Notwithstanding:
ï§ Please make sure to carefully follow all steps as learned in class when preparing the profit charts.
ï§ You can directly use this Excel spreadsheet for your project. However, please prepare a clean version of these charts removing notes or hints that were added during class.
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