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Imagine you are simultaneously buying a Tesla at-the-money put option, Tesla stock and you also sell an at-the-money Tesla call option. All a the same
Imagine you are simultaneously buying a Tesla at-the-money put option, Tesla stock and you also sell an at-the-money Tesla call option. All a the same time and the strike prices are the same and equal to the purchase price of the stock (hence at-the-money). Your position consisting of these three legs as described can have a positive payout to you at option maturity only when: Answer Choices:
Tesla stock stays unchanged
Tesla stock goes up
It can never have a positive payout
Tesla stock goes down
Tesla stock goes either up or down
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