Multiple Choice
You own a call option and put option that both have the same exercise price of $50, and their respective prices are $4 and $3. The stock is currently trading at $60. Calculate the dollar return on this strategy.
A) $1.00
B) $2.00
C) $3.00
D) $4.00
E) $5.00
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q87: A stock currently trades for $115. January
Q88: A hedge strategy known as a collar
Q89: Futures contracts are slower to absorb new
Q90: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q91: A one-year call option has a strike
Q93: Assume that you purchased shares of a
Q94: An advantage of a forward contract over
Q95: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q96: The derivative based strategy known as portfolio
Q97: A one-year call option has a strike