Multiple Choice
Suppose a stock is currently priced at $40 per share, a February 35 call has a premium of $8, and a February 45 put has a premium of $7. If you wanted to buy this stock below the current market price using options, at what future stock price would a strategy of buying the stock using options just break even with simply buying the stock today? (Ignore brokerage commissions.)
A) 32
B) 33
C) 47
D) 48
Correct Answer:
Verified
Correct Answer:
Verified
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