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Question

M Inbox (26)-stor x M Inbox (12), sum/X / zto.mheducation.com/hm.tpx 07 Assignment VL Recent x Question 2 (of 3) ·Save & Exit-brnt alue .33 points Problem 15-10 (my version) An investor purchases a stock for $50 and a put for $0.55 with a strike price of $42.5. The investor sells a cal for $0.58 with a strike price of $57.5. What is the maximum profit and loss for this position? Loss amount should be indicated by a minus sign.) Maximum payoff Minimum Payoff What is the payoff if the stock price at maturity is $53 References Worksheet 0 9 8 8 6

Explanation / Answer

maximum payoff=57.5-50=7.50

minimum payoff=42.5-50=-7.50

payoff at 53

=53-50=3

the above is the answers