Question
You buy one Merrill August 50 call contract and one Merrill August 50 put contract. The call premium is $4.25 and the put premium is
You buy one Merrill August 50 call contract and one Merrill August 50 put contract. The call premium is $4.25 and the put premium is $4.50. Your strategy is useful if you believe that the stock price __________.
Question 4 options:
|
| will be lower than $41.25 in August |
|
| will be between $41.25 and $58.75 in August |
|
| will be higher than $58.75 in August |
|
| either A or C |
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Advanced Modelling In Mathematical Finance
Authors: Jan Kallsen, Antonis Papapantoleon
1st Edition
3319458736, 978-3319458731
