Draw the profit diagram for strategy

Reference no: EM133322724

Question: A stock is currently traded at $26 per share. Suppose the following European options on the stock are available: Options Strike Price Premium Maturity Call $28 $2 1 year Put $24 $4 1 year Suppose an investor suggests the following strategy: sell one call option and buy one put option on Scholars stock. Draw the profit diagram for this strategy, and label the diagram well. Given the strategy, what price movements are required for the investor to have a profit?

Reference no: EM133322724

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