Task
In this assignment, you will solve problems about Payoffs and Trading Strategies.
Instructions

Use your textbook to answer the following question from Chapter 8:

Exercise 18

Please, upload xls, xlsx file.
Please, use the full computing power of Excel.

18. The options for Microsoft (stock price $25.84) are trading at the following prices:

Strike  Calls  Puts
22.50.  3.40.  0.10
25.00  1.25  0.30
27.50  0.15  1.80

State the trading ranges at maturity in which the net payoff of the following option
positions is positive: (a) 25.00 straddle, (b) 22.50 strip, (c) 27.50 strap, and (d) 22.50-
27.50 strangle