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:

Verified
Correct Answer:
Verified
Related Questions
Q1: Owning a call option that has a
Q2: Assume that call options on Microsoft stock
Q5: The price of a call option increases
Q6: The VIX is an estimate of expected
Q7: A warrant is a long-term call option
Q8: The value of a call option increases
Q9: Assume you purchased a call option with
Q10: When the stock price is very high
Q11: If you feel strongly that a stock
Q79: The lower limit on a call option's