What is the maximum profit and loss for this position

What is the maximum profit and loss for this position

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Reference no: EM131540786

An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? Draw the profit and loss diagram for this strategy as a function of the stock price at expiration.

Reference no: EM131540786

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