Question: 3. Given the following option position, find the maximum gain, maximum loss, and break-even point. If the stock was trading at $140 right before

3. Given the following option position, find the maximum gain, maximum loss, and break-even point. If the stock was trading at $140 right before the option expired, what would the gain or loss be? * L100 AMZN @ 119 S1 AMZN APR 125 CALL @ 11 Maximum Gain: Maximum Loss: Break/Even: Gain/Loss at ending price:
Step by Step Solution
★★★★★
3.46 Rating (172 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Long Position Long 100 shares of AMZN at 119 Short Position Short 1 AMZN APR 125 CALL at a premium o... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
