combination-strategies

Learning outcomes: Explain the motivation to initiate a covered call or a protective put strategy. Describe principal protected notes (PPNs) and explain necessary conditions to create a PPN. Describe the use and calculate the payoffs of various spread strategies. Describe the use and explain the...

Learning objectives: Describe the use and explain the payoff functions of combination strategies. Questions: 728.1. The risk-free rate is 3.0% and the the stock price of Discovery Communications (ticker: DISCK) is $20.00. Peter purchases a straddle with six-month European at-the-money options...