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A call option and a put option on a stock with strike of $ 4 0 costs $ 6 and $ 4 respectively. Aninvestor sells
A call option and a put option on a stock with strike of $ costs $ and $ respectively. Aninvestor sells both options. The stock price is $ Which one of the following statementsis true?
None of the above.
The premium paid by the investor to set up the strategy is $
The strategy makes a maximum loss of $ and has unlimited proft potential.The strategy makes a maximum proft of $ and has unlimited loss potential.The strategy makes a maximum proft of $ and a maximum loss of $
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