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What is the breakeven price of position at expiration date

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Reference no: EM132966214

Problem 1: You purchased one TXT call option with a strike price of $50, for a premium of $1.7 and wrote one TXT put option with a strike price of $61, for a premium of $2.2. Without considering transaction costs, what is the breakeven price (stock price at which profit is zero) of this position at expiration date (in half a year)? Pay attention, the underlying asset for both options is the same and so is the expiration date. The breakeven price of this position is ?

Reference no: EM132966214

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