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Healthy Organic Alternative Xcellence Inc. ( HOAX Inc. ) stock currently sells for $ 2 0 A European call option on HOAX stock with a
Healthy Organic Alternative Xcellence Inc. HOAX Inc. stock currently sells for $
A European call option on HOAX stock with a strike price of $ and time to expiration of one year sells for $ A European put option on HOAX Inc. stock with a strike price of $ and time to expiration of one year costs $ Consider the following strategy: sell one European call option and sell one European put option on HOAX stock. Draw the profit diagram for this strategy.
What needs to happen to the price of HOAX Inc. stock in order for you to earn a positive profit in one year on the option strategy described above?
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