Question
In a collar trading strategy, the strike price of the put $45, and the strike price of the call is $75. The put and
In a collar trading strategy, the strike price of the put $45, and the strike price of the call is $75. The put and call premiums are $1.50 and $2.50 respectively. If the stock price at the maturity of the options is $80, what is the net payoff from the strategy? A. Loss of $4 B. Loss of $5 C. Loss of $6 D. Gain of $1 E. Gain of $2
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
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