Find the trader profit and loss in dollars

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Use the following information to answer the next three questions.

Suppose a trader believes the value of BMC Inc will increase over the next three months and decides to use two european 3 month call options and one european 3 month put option to trade based on their belief. Each call option has a strike price of $40 and a premium of $3. The put option has an exercise price and premium of $40 and $1, respectively.

Find the trader's profit/loss in dollars if BMC trades for $37 when the options expire. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign or words when entering your response.

Reference no: EM131814661

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