Ask Question
20 September, 14:20

You buy one Home Depot June $60 call contract and one June $60 put contract. The call premium is $5 and the put premium is $3. At expiration, you break even if the stock price is equal to

+1
Answers (1)
  1. 20 September, 14:35
    0
    if price increases above $68 or decreases below $52, a profit is realized

    Explanation:

    At expiration, the break even if the stock price is equal to Call is:

    -$60 + (-$5) + $3 = $68 (break even)

    Put: - $3 + $60 + (-$5) = $52 (break even)

    Therefore At expiration, your break even if the stock price is equal to:

    if price increases above $68 or decreases below $52, a profit is realized.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You buy one Home Depot June $60 call contract and one June $60 put contract. The call premium is $5 and the put premium is $3. At ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers