A one-year European call option on a stock with a strike price of $33 costs $5.2; a one-year European put option on the same stock with a strike price of $33 costs $7.3. Suppose that a trader buys two call options and one put option. What is the break-even stock price below which the trader makes a profit?

Answer rating: 100% (QA)

To calculate the breakeven stock price below which the trader makes a profit we need to consider the ... View the full answer