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Consider an investor with a position consisting of 1 long European call and 1 long European...

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Finance

Consider an investor with a position consisting of 1 longEuropean call and 1 long European put, both having strike price of$50. The current underlying asset price is $50. The call price is$3 and the put price is $2. With this position, if the stock priceat maturity is above ___AND below___, the investor CANNOT make aprofit.

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Information provided Both options Strike price K 50 Call Premium 3 Put Premium 2 Thus Total Cost of this Position 32 5 Option is a derivative which gives its holder a right to buy or sell underlying assets but    See Answer
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Consider an investor with a position consisting of 1 longEuropean call and 1 long European put, both having strike price of$50. The current underlying asset price is $50. The call price is$3 and the put price is $2. With this position, if the stock priceat maturity is above ___AND below___, the investor CANNOT make aprofit.

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