What is the maximum potential loss for the trader blank

Reference no: EM133557748

The stock price of BAC is currently $120 and a put option with strike price of $120 is $5. A trader goes long 300 shares of BAC stock and long 3 contracts of the put options.

a. What is the maximum potential loss for the trader Blank 1?

b. When the stock price is $140, what is the trader's net profit Blank 2?

Reference no: EM133557748

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