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A call option with a strike price of $50.00 costs two dollars. A put option with a strike price of $45.00 costs three dollars. Create
A call option with a strike price of $50.00 costs two dollars. A put option with a strike price of $45.00 costs three dollars. Create a short strangle from these two options.
The break-even points are:
If the price is $47.30 at expiration, your profit will be $
If the price is $39.40 at expiration, your profit will be $
If the price is $54.19 at expiration, your profit will be $
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