Question: A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock with a strike
A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock with a strike price of $30 costs $4. Suppose that a trader buys two call options and one put option. What is the breakeven stock price, above which the trader makes a profit?
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2 call 1 put Cost of the option 23 4 10 Payoff 2 max 0St ... View full answer
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