A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock with a strike price of $30 costs $4. Suppose that a trader buys two call options and one put option. What is the breakeven stock price, above which the trader makes a profit? Need to know how the calculations are done step by step.
Paper#2761 | Written in 18-Jul-2015Price : $25