You create a strap by buying two calls and one put on ABC stock, all with a
Question:
You create a “strap” by buying two calls and one put on ABC stock, all with a strike price of $45. The calls cost $5 each and the put costs $4. If you close your position when ABC stock is priced at $55, what is your per-share gain or loss?
a. $4 loss
b. $6 gain
c. $10 gain
d. $20 gain.
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Lets analyze the profitloss for each option and then sum them up Calls You bou...View the full answer
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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