Question: Hello everyone! Could someone please help me here? I have no idea how to start and about how to get to the solution... Suppose you

Hello everyone!

Could someone please help me here? I have no idea how to start and about how to get to the solution...

Suppose you bought two Xerox call contracts and one Xerox put contract, both of which will expire in three months. The exercise price of the call is $70 and the exercise price of the put is $75. Each option is sold as a 100-share contract.

a. What is your payoff at expiration of your investment if Xerox stock sells for $65 on the expiration date? What if it sells for $72? What if it sells for $80?

Thank you so much, Sarah

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