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HMW # 2 Chapter 15 -Review Question 3 (of 4) Score This Question p Save & Exit S

ID: 1171445 • Letter: H

Question

HMW # 2 Chapter 15 -Review Question 3 (of 4) Score This Question p Save & Exit Submit 10.00 points You establish a stradde on Waimant using September calland put opions wth a strike pice ot $58. The call premum is $4 65 and the put premium is $5.40 a. What is the most you can lose on this position? (input the amount as positive value. Round your answer to 2 decimat places.) Maxmum loss $ b. What wil be your profit or loss if Waltrmart is seling for $65 in September? (input the amount as positive value. Round your answer to 2 decimal places.) C. At what stock prices will you break even on the stradae? (tnput your answers from nighest to lowest to receive Round your answers to 2 decimal places) credit for your answers. Break even prices s| and $

Explanation / Answer

a) Maximum loss:

b)Where strike price is $58 and market price is $65:

c) Break even point: