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Consider the following data on XYZ Inc. options: Option Market price Strike Price Market price Expiration of option per of XYZ Inc. contract stock Call
Consider the following data on XYZ Inc. options: Option Market price Strike Price Market price Expiration of option per of XYZ Inc. contract stock Call (1 share $217 $1000 $943 per contract) Put (1 share $257 $1000 $943 1 year per contract) 1 year Assuming a purchase of 1 XYZ Inc. call option contract and 1 XYZ Inc. put option contract with the above market prices. Elaborate, show, and calculate full ranges of prices of XYZ Inc. stock, where this portfolio will be profitable at expiration. Also indicate the range of prices of XYZ Inc. stock where this portfolio will lose money at expiration
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