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A one-year European call option on a stock with a strike price of $42.3 costs $4.7; a one-year European put option on the same stock
A one-year European call option on a stock with a strike price of $42.3 costs $4.7; a one-year European put option on the same stock with a strike price of $42.3 costs $3.7. 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? a. $54.40 b. $29.20 c. $38.60 d. $35.75 e. $33.90
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