Consider the options portfolio-break-even points

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Reference no: EM13945281

Consider the following options portfolio. You write a call option on IBM with exercise price of $85. The option premium is $0.95 per share. You write a put option on IBM with exercise price of $80. The put option premium is $0.55 per share. What is the profit/loss on this position at the expiration date if IBM is selling at $83 on that day? What if IBM is selling at $90? What are your break-even points?

Reference no: EM13945281

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Consider the options portfolio-break-even points : Consider the following options portfolio. You write a call option on IBM with exercise price of $85. The option premium is $0.95 per share. You write a put option on IBM with exercise price of $80. The put option premium is $0.55 per share. What is t..

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