Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Investor B sold a put option and bought a call option when the stock price is $30. The strike price for both options is $35.
Investor B sold a put option and bought a call option when the stock price is $30. The strike price for both options is $35. Premiums on call and put is $3.55 and $4.05 respectively. At the time of maturity, the stock is trading at $48. How much B earned as profit?
a) $5.40
b) $17.50
c) $18.50
d) $13.50
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started