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What is the break-even point for this position

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Reference no: EM132599025

Question - A call option with a strike price of $50 costs $1. A put option with a strike price of $50 costs $2.

(a) Explain how a straddle can be created from these two options.

(b) Assuming interest rate to be zero, what is the current spot price?

(c) What is the break-even point for this position?

Reference no: EM132599025

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