What is the breakeven stock price

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Reference no: EM131070494

A one-year call option on a stock with strike price of $45 cost $5 and a one-year put option on a stock with strike price of $35 cost $3. A trader shorts two put options and shorts one call option. a) What is the breakeven stock price, below which the trader will lose money? b) What is the breakeven stock price, above which the trader will lose money?

Reference no: EM131070494

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