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Which the trader makes a profit is

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Question 1: A one-year call option on a stock with a strike price of $40 costs $1; a one-year put option on the stock with a strike price of $35 costs $3. Suppose that a trader buys two call options and one put option. The breakeven stock price below which the trader makes a profit is?

Option 1: $28 

Option 2: $29 

Option 3: $30 

Option 4: $31

Reference no: EM132861336

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