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5) Covered call: What is the maximum profit, maximum loss and breakeven for June 120 and 130? (N=100) TABLE 6.1 DCRB OPTION DATA, MAY 14
5) Covered call: What is the maximum profit, maximum loss and breakeven for June 120 and 130? (N=100)
TABLE 6.1 DCRB OPTION DATA, MAY 14 CALLS PUTS EXERCISE PRICE MAY JUNE JULY MAY JUNE JULY 120 8.75 15.40 20.90 2.75 9.25 13.65 16.60 19.65 125 5.75 13.50 18.60 4.60 11.50 130 3.60 11.35 16.40 7.35 14.25 Current stock price: 125.94 Expirations: May 21, June 18, July 16 Risk-free rates (continuously compounded): 0.0447 (May); 0.0446 (June); 0.0453 (July)Step by Step Solution
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