Question: Current stock price is 27 while a call option is available with a strike price of 20 and at a price of 3.77. A 1:2

Current stock price is 27 while a call option is available with a strike price of 20 and at a price of 3.77. A 1:2 Hedge is formed. If after a certain time, stock price declines to 15.5, Net Profit (Loss) of the trader is ________. In contrast, if stock price increases to 26, net profit (loss) will be ________. At price stock price ________ and _______, net payoff will be zero.

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