An investor purchases a stock for $38 and a put for $.50 with a strike price of

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An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor also sells a call for $.50 with a strike price of $40. What are the maximum possible profit and loss for this position? Draw the profit and loss diagram for this strategy as a function of the stock price at expiration. P-639

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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