Question
Simesh purchased a call option on Vodafone stock with an exercise price of $60 and a three-month expiration date, as well as a put option
Simesh purchased a call option on Vodafone stock with an exercise price of $60 and a three-month expiration date, as well as a put option on Vodafone stock with the same exercise price and expiration date. Today's market price for Vodafone shares is $57.20. The call price is now trading at $1.45. The put price is now trading at $3.70.
Create a properly labelled graphic for the call option payout.
Create a properly labelled graphic for the put option payout.
What will the Vodafone share price be on the expiration date such that Simesh can benefit from both options?
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