Question
An investor buys 2 shares of stock for $55 per share and simultaneously sells a call option on the stock with a strike price of
An investor buys 2 shares of stock for $55 per share and simultaneously sells a call option on the stock with a strike price of $60 for a premium of $2 and buys a put option on the stock with a strike price of $50 for a premium of $3. Options are for a single share of stock each and expire the same day.
What is the profit of the investor's strategy when the market price of the stock is $55 at the expiry date of the options?
The profit of the investor's strategy is $____
(Please retain at least 4 decimal places in your calculations and 2 decimal places in the final answer)
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