A trader buys a strangle on a stock by buying one european, Ask an Expert

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A trader buys a strangle on a stock by buying one European call option with strike price $55 for $3 and buying one European put option with strike price $45 for $2. The trader holds his position until maturity. For what stock price(s) at maturity, does the trader break even? (Profit equals zero.)

A. $50

B. $45 and $55

C. $43 and $58

D. $40 and $60

E. $38 and $63

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Financial Management, Finance

Category:- Financial Management
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