Question
A one-year European call option on a stock with a strike price of $33 costs $5.2; a one-year European put option on the same stock
A one-year European call option on a stock with a strike price of $33 costs $5.2; a one-year European put option on the same stock with a strike price of $33 costs $7.3. Suppose that a trader buys two call options and one put option. What is the break-even stock price below which the trader makes a profit?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
7th Canadian Edition
1259650650, 978-1259650659
