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An investor made the following trades. Bought a share of stock for $45 Bought a put option, X=45 for $4 Wrote a call option, X=50
An investor made the following trades.
- Bought a share of stock for $45
- Bought a put option, X=45 for $4
- Wrote a call option, X=50 for $5
If the stock price is $60 at the expiration of the options, what is the total profit to the investor?
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Step: 1
To calculate the total profit to the investor well consider each trade separately and then determine ...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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