Question
A one-year call option on a stock with a strike price of $45 costs $3; a one-year put option on the stock with a strike
A one-year call option on a stock with a strike price of $45 costs $3; a one-year put option on the stock with a strike price of $45 costs $5. Suppose that a trader buys five call options and three put option. What is the breakeven stock price above which the trader makes a profit?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
