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The common stock of ABC Inc. has been trading in a narrow price for the past month, and you are convinced it is going to
The common stock of ABC Inc. has been trading in a narrow price for the past month, and you are convinced it is going to break far out of that range in the next 3 month call option at an exercise price of $150 is $15. The risk-free interest rate is 10% per year and the 3-month put option on ABC Inc. has an exercise price of $150 (the stock pays no dividends).
Considering the appropriate strategy in this case, what should be the minimum stock price to break-even?
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