A one$-$year European call option on a stock with a strike price of $$33$ costs $$3\mathrm{.}4$; a one$-$year European put option on the same stock with a strike price of $$33$ costs $$1\mathrm{.}2.$ Suppose that a trader buys two call options and one put option. What is the break$-$even stock price above which the trader makes a profit?

Question $5$Answer

a$.$

$$35\mathrm{.}30$

b$.$

$$36\mathrm{.}40$

c$.$

$$37\mathrm{.}00$

d$.$

$$39\mathrm{.}80$

e$.$

$$41\mathrm{.}00$