Consider the following position: Buy 5 Citigroup Dec 4 calls @
.60 and write 2 Citigroup Dec 3 calls @ .60. Shares of Citigroup
currently trade at $3.69. a) Find the cost of this position b)
Write the specific profit function of this position c) Draw a
profit loss diagram for this position d) Find the break even stock
price(s) for this position e) Find the maximum profit for this
position f) Find the maximum loss for this position g) When would
one want to enter into this position?(4, and 3 are the strike
prices)
Consider the following position: Buy 5 Citigroup Dec 4 calls @ .60 and write 2 Citigroup Dec 3 calls @ .60. Shares of Ci
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