Maximum profit and loss for position


Problem:

An investor purchases a stock for $57 and a put for $.85 with a strike price of $52. The investor sells a call for $.85 with a strike price of $61.

Required:

Question: What is the maximum profit and loss for this position?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Finance Basics: Maximum profit and loss for position
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