Who can help me to construct a portfolio with somce call options?
Hi there!
I have some troubles with some questions that i have to make for my university work. Hope someone can help me out...
An Apple stock is currently trading at 27euro. You think that the price will increase over the next 3 months but you assume that it will not rise above 29euro per share. Call options on Apple stock are available with strikes of 23.5, 26, 28.5, and 31 euro and expiration of 3 months are available on the market.
Construct a portfolio with (some of) the above call options. I don't really get how to do this since I just started with studying options. Can someone help me?
Thanks in advance!
Do you go to class?
Yes, I go to class but I just need some help. I'm in my first year, so I find it really difficult.
I was thinking should I issue the call option of 31 and at the same time buy a call option of 28.5(so out of the money) ? Is this bull strategy the best I can do?
I would appreciate some help and explanation. Thanks in advance
No one willing to help?
buy the 26, sell the 28.5 or the 31 (3m expiry), depending on which one gives you the higher payout if aapl = 29 in 3m
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