You have bought both a call option and a put option on XYZ stock with the...

 

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You have bought both a call option and a put option on XYZ stock with the same expiration date. The exercise price of the call option is $40, and the exercise price of the put option is $35. What is the payoff of your options portfolio at the expiration date, if the stock price of XYZ at that date will be $38 per share? You have bought both a call option and a put option on XYZ stock with the same expiration date. The exercise price of the call option is $40, and the exercise price of the put option is $35. What is the payoff of your options portfolio at the expiration date, if the stock price of XYZ at that date will be $38 per share?

Answer rating: 100% (QA)

To calculate the payoff of the options portfolio at expiration date we need to ... View the full answer