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alex41 [277]
3 years ago
7

An investor purchases a stock for $52 and a put for $0.60 with a strike price of $50. The investor sells a call for $0.60 with a

strike price of $58. What is the maximum profit and loss for this position
Business
1 answer:
Nutka1998 [239]3 years ago
6 0

Answer:

Maximum profit = $6

Maximum loss = -$2

Explanation:

The computation of maximum profit and loss for this position is shown below:-

Maximum profit = Strike price - Purchase of stock

= $58 - $52

= $6

Maximum loss = Strike price - Purchase of stock

= $50 - $52

= - $2

Therefore for determining the maximum profit and loss for this position we simply applied the above formulas.

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3 years ago
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A new regulation requires the local coal plant to install filtering technology to reduce their carbon emissions by 50%. Purchasi
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