A one$-$year European call option on a stock with a strike price of $$37\mathrm{.}7$ costs $$4\mathrm{.}1$; a one$-$year European put option on the same stock with a strike price of $$37\mathrm{.}7$ costs $$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$.$

$$42\mathrm{.}80$

b$.$

$$41\mathrm{.}80$

c$.$

$$40\mathrm{.}75$

d$.$

$$47\mathrm{.}90$

e$.$

$$45\mathrm{.}90$