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Problem 4. (1 point) Suppose that you buy for 49 dollars a share of stock. order to hedge your investment, you decide to also buy
Problem 4. (1 point) Suppose that you buy for 49 dollars a share of stock. order to hedge your investment, you decide to also buy 2 put options and sell 1 call option on the same stock. Each put costs 3 dollars and has a strike price of 40 dollars. The call costs 5 dollars and has a strike price of 60 dollars. Find (if it exists) the maximum possible profit for your portfolio on the exercise date. If there is no maximum, then write "None" for your answer. (Note, your portfolio contains options and a share of stock) Answer = dollars
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