Suppose that you buy for 13 dollars apiece two call options with a strike price of 50 dollars, and you buy for 15 dollars a put option with a strike price of 65 dollars.
a) What is the minimum profit possible on the exercise date? Answer =
dollars.
b) What is the maximum stock price at the exercise date that will result in you breaking even?
Answer =
dollars.
You can earn partial credit on this problem.