Question
The current price of the stock is $160. The put option price for these shares with an exercise price of 150 is $7 and the
The current price of the stock is $160. The put option price for these shares with an exercise price of 150 is $7 and the call option price is also $7 for those shares with the same maturity and exercise price of 180. put option 1 for a week contract and call option contracts to purchase shares when selling answer the following questions.
1) In the expiry of the option, print out the gains and losses resulting from the above strategy.
2) Calculate the maximum profit and the maximum loss size and determine the range of share prices that occur respectively.
3) Find the stock price of the break-even.
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