Question
On the same day a customer buys 100 shares of ABC at $40 and sells short 100 shares of XYZ at $50. The customer then
On the same day a customer buys 100 shares of ABC at $40 and sells short 100 shares of XYZ at $50. The customer then buys 1 ABC Jan 40 Put at $4 and 1 XYZ Jan 50 Call at $5. XYZ rises to $60 and the customer exercises the call. ABC falls to $25 and the customer exercises the put. The net gain or loss on all transactions is?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
11th Edition
0321357965, 978-0321357960
