An investor purchases a stock for $54 and a put option for $.70 with a strike price of $51. The investor also sells a call option for $.70 with a strike price of $62. What is the maximum profit and loss for this position? (Loss amount should be indicated by a minus sign. Round your answers to 2 decimal places.) Maximum profit Maximum loss %24 %24

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An investor purchases a stock for $54 and a put option for $.70 with a strike price of $51.
The investor also sells a call option for $.70 with a strike price of $62. What is the
maximum profit and loss for this position? (Loss amount should be indicated by a minus
sign. Round your answers to 2 decimal places.)
Maximum
profit
Maximum loss
%24
%24
Transcribed Image Text:An investor purchases a stock for $54 and a put option for $.70 with a strike price of $51. The investor also sells a call option for $.70 with a strike price of $62. What is the maximum profit and loss for this position? (Loss amount should be indicated by a minus sign. Round your answers to 2 decimal places.) Maximum profit Maximum loss %24 %24
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