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Let us assume that a trader can buy a 6-month call option on a stock with a strike price of $60 for $4 and a
Let us assume that a trader can buy a 6-month call option on a stock with a strike price of $60 for $4 and a 6-month put option on the stock with a strike price of $60 for $5. Suppose the trader buys three call options and two put options. Calculate the breakeven stock price a) above which the trader makes a profit and b) the breakeven stock price below which the trader also makes a profit. Justify your answers carefully using the definitions of the call and put options
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