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You Purchased a Stock for $43 a Share, a Call

Question 3

Multiple Choice

You purchased a stock for $43 a share, a call option with an exercise price of $40 and a premium of $5, and a put option with an exercise price of $45 and a premium of $4. What will be your net profit if you close out all three positions when the stock is selling for $48 a share?


A) -$9
B) -$4
C) $5
D) $4

Correct Answer:

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