Question
A trader takes a simultaneous short position in the following options 1) a call option with a strike price of $50 and premium of $3
A trader takes a simultaneous short position in the following options
1) a call option with a strike price of $50 and premium of $3
2) a put option with a strike price of $40 and premium of $4.
What is the range price of the underlying asset when you will make profit. Draw the profit and payoff diagrams
What is trader view of this underlying asset price for taking this position?
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
