Suppose that a trader buys two call options and one put option. A one-year call option on a stock with a strike price of $36 costs $1.90. A one-year put option on the stock with a strike price of $36 costs $1.68. What is the breakeven stock price ounded to the nearest cents , below which the trader makes a profit? Round your inal result to the nearest cents and input one number only, without units or percentage sign [%], using the dot [.] to separate decimals.

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
Section: Chapter Questions
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Suppose that a trader buys two call options and one put option. A one-year call|
option on a stock with a strike price of $36 costs $1.90. A one-year put option on
the stock with a strike price of $36 costs $1.68. What is the breakeven stock price
rounded to the nearest cents , below which the trader makes a profit? Round your
final result to the nearest cents and input one number only, without units or
percentage sign [%], using the dot [.] to separate decimals.
Your Answer:
Answer
Transcribed Image Text:Suppose that a trader buys two call options and one put option. A one-year call| option on a stock with a strike price of $36 costs $1.90. A one-year put option on the stock with a strike price of $36 costs $1.68. What is the breakeven stock price rounded to the nearest cents , below which the trader makes a profit? Round your final result to the nearest cents and input one number only, without units or percentage sign [%], using the dot [.] to separate decimals. Your Answer: Answer
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