The trader holds his position until maturity for what stock


A trader buys a strangle on a stock by buying one European call option with strike price $55 for $3 and buying one European put option with strike price $45 for $2. The trader holds his position until maturity. For what stock price(s) at maturity, does the trader break even? (Profit equals zero.)

A.   $50

B.    $45 and $55

C.    $43 and $58

D.   $40 and $60

E.    $38 and $63

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Financial Management: The trader holds his position until maturity for what stock
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