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5. You simultaneously purchase an underlying stock at $100 and buy an at-the-money put (exercise price is $100) on the stock. The option price is
5. You simultaneously purchase an underlying stock at $100 and buy an at-the-money put (exercise price is $100) on the stock. The option price is $10. What is the breakeven stock price for this strategy with regard to profit at expiration?
$90 | ||
$95 | ||
$100 | ||
$105 | ||
$110 |
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