Question
Which one of the following strategies will give you unlimited downside risk and a maximum profit opportunity of $5 per share? Buy stock at $10
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Which one of the following strategies will give you unlimited downside risk and a maximum profit opportunity of $5 per share?
Buy stock at $10 and a put option with strike X=$8 for $1.0 per share
Buy stock at $10 and sell a put option with strike X=$9 for $4 per share
Buy stock at $10 and sell a call option with strike X=$13 for $2 per share
Short stock at $10 and buy a call option with strike X=$17 for $2 per share
Which one of the following strategies will give you unlimited downside risk and a maximum profit opportunity of $5 per share?
| Buy stock at $10 and a put option with strike X=$8 for $1.0 per share | ||
| Buy stock at $10 and sell a put option with strike X=$9 for $4 per share | ||
| Buy stock at $10 and sell a call option with strike X=$13 for $2 per share | ||
| Short stock at $10 and buy a call option with strike X=$17 for $2 per share |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
