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A six month call with a strike price of $60 costs $6. A six month put with a strike price of $40 costs $3. The
A six month call with a strike price of $60 costs $6. A six month put with a strike price of $40 costs $3. The current stock price is $50. A trader uses the options and stock to create a strategy that requires long 70 shares, short 100 call options, and long 100 put options.
A. What is the highest net profit of the traders position when the stock is below $26?
B. What is the highest net profit of traders position when the stock is between 50 and 80?
C. What is the maximum loss for the trader when the stock is below $50?
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