13. A trader buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $4. What is the profit/loss on the exercise date if the share price is $52? Select one: a. $7 profit O b. $4 profit c. Zero profit d. $7 loss

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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13. A trader buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same
maturity. The call costs $3 and the put costs $4. What is the profit/loss on the exercise date if the share price is $52?
Select one:
a. $7 profit
O b. $4 profit
O c. Zero profit
O d. $7 loss
Transcribed Image Text:13. A trader buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $4. What is the profit/loss on the exercise date if the share price is $52? Select one: a. $7 profit O b. $4 profit O c. Zero profit O d. $7 loss
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