Question
Can someone explain in detail how this answer was calcuated? ie Why -100 -$5 for call and why $2 +105 profit for put? Answer is
Can someone explain in detail how this answer was calcuated? ie Why -100 -$5 for call and why $2 +105 profit for put? Answer is "C" with working shown below.
The maximum potential profit of your strategy is ________ if both options are exercised. A. $600. B. $500. C.$200. D. $300. E. $100
$100 $5 = $105; + $2 + $105 = $107; $2 100 = $200. <-ANSWER
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
