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A trader buys a strangle on a stock by buying one European call option with strike price $55 for $3 and buying one European put
A trader buys a strangle on a stock by buying one European call option with strike price $55 for $3 and buying one European put option with strike price $45 for $2. The trader holds his position until maturity. For what stock price(s) at maturity, does the trader break even? (Profit equals zero.)
A. $50
B. $45 and $55
C. $43 and $58
D. $40 and $60
E. $38 and $63
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