i need steps for question 20 If you long a call with exercise price of $30 and s

Question

i need steps for question 20

If you long a call with exercise price of $30 and short a call with exercise price of S32.50, and you long a put with exercise price of $25 and short a put with exercise price of $15, and the current stock price is $27.50, which of the following is arc most true? you are expecting price to decrease more than increase in the future you are expecting price to remain in a narrow trading band between $25 and $30 in the future you are expecting price to increase more than decrease in the future you are sure that price will take off greatly in one direction (up) or the other (down) with the same strength, you just do not know which direction the stock will go there is not enough information to make an informed selection at this point

Explanation / Answer

ANSWERS ARE

19= option C is correct

20== option e is correct

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.