What is the worst loss that the position can incur what is


Today’s price of Home Depot’s common stock is $50. A July 2018 call option on this Home Depot’s stock has an exercise price of $55 and costs $5. A July 2018 put option on this stock has an exercise price of $45 and costs $2. What is the cost of holding the long call and long put and what is this position called? At what stock price or prices will the position show a zero profit? What is the worst loss that the position can incur? What is the best outcome and for what range of stock prices does it occur?

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Financial Management: What is the worst loss that the position can incur what is
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