Forward

Long position

Forward Price F 53
ST 50
expiration T 1 year
Long Foward
Payoff($)
Payof ST -F -3
30

20
ST Payof
30 -23 10
40 -13
0
50 -3 30 40 50 53 60 70
53 0 -10
60 7
70 17 -20
80 27
-30
Long Foward

Long Foward

50 53 60 70 80ST ($)
Forward
Short Position

Forward Price F 53
ST 50
Expiration T 1 year
Short Fow
F-ST Payoff($)
Payof 3
30

ST Payof 20
30 23
10
40 13
50 3 0
53 0 30 40 50 53
-10
60 -7
70 -17 -20
80 -27 -30
 Short Foward
$)

Short Foward

ST ($)
30 40 50 53 60 70 80
call option
Long Position

strike price K 45
premium of call P 4.08
interest rate r 8.00% annual
ST 45
Expiration T 1 year

Payof MAX[0, ST - K] 0
FV(P) 4.4064
Profit Payof - FV(P) -4.4064

ST Payof FV(P) Profit

20 0 4.4064 -4.4064
30 0 4.4064 -4.4064
40 0 4.4064 -4.4064
45 0 4.4064 -4.4064
50 5 4.4064 0.5936
60 15 4.4064 10.5936
70 25 4.4064 20.5936
 Long call option
Payoff($)
30
25
20
15 Long call option
10
5
0
20 30 40 45 50 60 70
St($)

Long call option

Profit ($)
25
20 Long call option
15
10
5
0
20 30 40 45 50 60 70 St ($)
-5
-10
Call option
Short Call

Strike Price K 45
premium of call P 4.08 0
interest rate r 8.00% annual 20 30
-5
ST 45
Expiration T 1 year -10

Payoff($) -15
Payof -MAX[0, ST - K] 0
-20
FV(P) 4.4064
Profit 4.4064 -25

-30
ST Payof FV(P) Profit
20 0 4.4064 4.4064
30 0 4.4064 4.4064
40 0 4.4064 4.4064
45 0 4.4064 4.4064
50 -5 4.4064 -0.5936
60 -15 4.4064 -10.5936
70 -25 4.4064 -20.5936
10
5
0
20 3
-5
Profit($)
-10
-15
-20
-25
 Short Call Option
0
St($)
20 30 40 45 50 60 70
-5

-10

Payoff($) -15 Short Call Option

-20

-25

-30

Short Call Option

10
5
0 St($)
20 30 40 45 50 60 70
-5
Profit($) Short Call Option
-10
-15
-20
-25
Put Option
Long Put

Strike Price K 40
premium of put P 3.26
interest rate r 8.00% annual
ST 40
Expiration T 1 year

Payof MAX[0, K- ST] 0

FV(P) 3.5208
Profit MAX[0, K-ST]-FV -3.5208

ST Payof FV(P) Profit

10 30 3.5208 26.4792
20 20 3.5208 16.4792
30 10 3.5208 6.4792
40 0 3.5208 -3.5208
50 0 3.5208 -3.5208
60 0 3.5208 -3.5208
70 0 3.5208 -3.5208
 Long Put Option
Payoff($)
35
30
25
20
Long Put Option
15
10
5
0
St($)
10 20 30 40 50 60 70

Long Put Option

Proft($)
30
25
20
15
10 Long Put Option

5
0
-5 10 20 30 40 50 60 70 St($)

-10
Put Option
Short Position

Strike Price K 40
Premium of put P 3.26
Interest rate r 8.00% annual
ST 40
Expiration 1 year

Payof -MAX[0, K-ST] 0

FV(P) 3.5208
Profit -MAX[0, K-ST]FV 3.5208

ST Payof FV(P) Profit

10 -30 3.5208 -26.4792
20 -20 3.5208 -16.4792
30 -10 3.5208 -6.4792
40 0 3.5208 3.5208
50 0 3.5208 3.5208
60 0 3.5208 3.5208
70 0 3.5208 3.5208
 Short Put Option
0 St($)
10 20 30 40 50 60 70
-5
-10
-15
Payoff($) Short Put Option
-20
-25
-30
-35

Short Put Option

10
5
0 St(S)
-5 10 20 30 40 50 60 70

-10 Short Put Option

Profit($) -15
-20
-25
-30