payoff for korean exporting company
Post on 07-Jan-2016
70 Views
Preview:
DESCRIPTION
TRANSCRIPT
Payoff for Korean Exporting Company
950
KRW/1USD
Profit
1010
890
KIKO: Knock In Knock Out
950
890
1010
960
Knock-Out
Buy 1 PutK=960
KIKO: Knock In Knock Out
950
890
1010
960
Sell 2(3) CallK=1010
Knock-In
950
890
1010
960
Knock-Out
Buy 1 Put
Sell 2(3) Call
Knock-In
+
+Naked Position
Payoff with KIKO contract
950
890
1010
960
Knock-Out
Buy 1 Put
Sell 2(3) Call
Knock-In
+
+Naked Position
Payoff with KIKO contract
950
890
1010
960
Knock-Out
Buy 1 Put
Sell 2(3) Call
Knock-In
+
+Naked Position
Payoff with KIKO contract
KIKO: Knock In Knock Out
Ex. Rate at MAT Option Contract Profit
St ≤890 Terminated ( - )
890<St≤960 Exercised at K=960(Put - Long Position)
(+)
960≤St<1010 Not Exercised(+)
1010≤St Exercised at K=1010(Call - Short Position)
( - )
Exchange Rate
KRW/1USDSource : Paxnet
KIKO: Knock In Knock Out
950890 1010
960
KO KI
KIKO payoff
Short Strangle payoff
top related