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A put and a call have the following terms: Call: strike price $30 term price three months $3 Put: strike price $30 term three months
A put and a call have the following terms: Call: strike price $30 term price three months $3 Put: strike price $30 term three months $4 price The price of the stock is currently $29. You sell the stock short and purchase the call. Complete the following table and answer the questions Profit on put Net profit Price of the stock Profit on stock $20 25 30 35 40 31. What is the maximum possible profit on the position? 32. What is the maximum possible loss on the position? 33. What is the range of stock prices that generates a profit? 34. What advantage does this position offer? A put and a call have the following terms: Call: strike price $30 term price three months $3 Put: strike price $30 term three months $4 price The price of the stock is currently $29. You sell the stock short and purchase the call. Complete the following table and answer the questions Profit on put Net profit Price of the stock Profit on stock $20 25 30 35 40 31. What is the maximum possible profit on the position? 32. What is the maximum possible loss on the position? 33. What is the range of stock prices that generates a profit? 34. What advantage does this position offer
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