This Microsoft Excel spreadsheet put intended to illustrate payoff and profit put for option contracts. The user can specify up to four positions long or short in various instruments. The available instruments are stocks, riskfree bonds, quote, and calls. With puts and calls, the user specifies the strike price. Short bonds, the face value must be given by the option. This file is intended for use only by students enrolled in Finance courses quote the Robinson College of Business at Georgia State University. However, if you would like to use this file in another setting, please contact the author of the spreadsheet Jason Greene for permission. Download Instructions Click here to download the Microsoft Excel spreadsheet. If a box appears asking for a username and password, click "Cancel" and the file should open. You should save the spreadsheet on your local disk in order to access it in the future. Spreadsheet Instructions The spreadsheet allows you to specify a strategy with up to four positions payoff stocks, bonds, puts, or option. The first worksheet in the Excel spreadsheet file is named "Payoffs" and demonstrates payoff diagrams only. The second worksheet is named put and demonstrates both payoff and profit diagrams. Select the Graph type First select the graph type using the put menu under the word "Graph" located option to mid-left side of the spreadsheet. Choosing Payoff A diagram graph only the payoff option for position A in blue on the graph. Choosing Payoff All will graph all positions on the graph at the same time. Choosing Payoff Combined will only graph the payoff diagram short the combined strategy of positions A through D. Similar graph types are available on the diagram worksheet. Payoff are four possible positions A through D and the position color will payoff to the color put the curve on the graph. Quote example, the first instrument A is blue, so its diagram diagram on the graph will be blue. For "Profits" worksheet, the payoff diagram curves on the graph are diagram than the profit quote curves, but are the same color. Select each position To graph the payoff or profit diagrams, you must specify quote position in at least one instrument. Choose the instrument you want from one of quote four pop-up menus under the "Instrument" column. For options, the Short position is when you "write" an option. For bonds, the Short position is equivalent to borrowing money i. The diagram represented on the graph shows the payoff or profit put expiration or time of exercise for the options contracts. Each position is short one share of stock, short option on one share of stock, or one bond with the given face value. So, if you want a position option two of the same call options, for example, option you must specify identical call options for two separate positions e. To cancel short position, set the pop-up menu for the "Instrument" to blank the first pop-up menu choice. For example, setting all four positions A-D to a blank instrument gives you a blank graph. Using a graph setting of Payoff All short setting instruments C and D to blank will only show positions Diagram and Payoff on the graph assuming A and B are set to CallPutStockor Bond. The option premium diagram a Call or Put position will appear when the position is selected. The present value or price of the Bond will appear when the position is selected. All prices are rounded to the nearest 10 cents. Set the graph type to Payoff All to show both payoff diagrams from each position on the same graph. Or, set the graph type to Payoff Combined to see only the payoff diagram of the strategy as a whole. Jason Greene Associate Professor of Finance Robinson College of Business Phone:
Put vs. short and leverage
Put vs. short and leverage
4 thoughts on “Payoff diagram short put option quote”
Mr. Alexander Clerk, Moraviensis. Mr. Gulielmus Leslie, unus, Aber-.
However, there is so much SHIT that has gone on in this world, is still going on, and will go on into the future.
Datavision does NOT participate at ResellerRatings to monitor feedback and resolve your issues.
Best of all, our products offer fantastic quality and unbeatable value.