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Business, 13.06.2020 19:57 cherryice68

Consider a portfolio containing options on the stock of Amazon (ticker: AMZN). Suppose today you sell a $1,900-strike Amazon call option for $300, buy a $2,000-strike Amazon call option for $275, buy a $1,900-strike Amazon put option for $100, and sell a $2,000-strike Amazon put option for $150. All options have an expiration date that is one year from today and the annual risk-free interest rate is zero. What is the initial cost of the portfolio of options today?

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