Question
You bought a call option on with an exercise price of $2 and you paid $0.05/ as premium. At the same time, you sold a
You bought a call option on with an exercise price of $2 and you paid $0.05/ as premium. At the same time, you sold a put on with an exercise price of $2 and you received $0.12/ as premium. a. What is your profit/loss if ST = $1.94/? b. What is your profit/loss if ST = $1.99/? c. What is your profit/loss if ST = $2.10/?
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0471072419, 978-0471072416
