1. You purchase three IBM 55 put options for a premium of $3 each and simultaneously sell 2 IBM 60 calls for a premium of $5 each. Ignoring transaction costs and the time value of money, the break-even stock price(s) of the position is (are)

a) $54.25 and 60.5

b) $55.00

c) $54.67 and 60. 5 *

d) $55.75

e) none of the above

EXPLAIN AND CLARIFY, NO EXCEL