| CHAPTER 4 |

Expiration Profit and Loss

1.  Using the grid below, draw the parity graphs (the value at expiration) for the following positions:

a.   long a 65 call

b.   short a 70 call

c.   long a 75 put

d.   short an 80 put

Images

2.  Using the grid below, draw the parity graphs (the value at expiration) for the following combination positions:

a.   long a 70 put and long a 75 call

b.   long an 80 put and short an 80 call

c.   short two 65 calls

Images

3.  The slopes of the various option and underlying positions at expiration can be summarized as follows: ...

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