As of march 1st 2007 the stock price of boggle inc was 40, Ask an Expert

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As of March 1st, 2007, the stock price of Boggle Inc. was $40 and an investor could buy at-the-money European call due to expire in one year for $4, and an at-the-money European put due to expire in one year for $3. The continuously compounded risk-free rate over the one-year period is reported to be 2.53%. What is the maximum loss on a portfolio that is long one at-the-money put and one at-the-money call? a. $0.00 b. -$7.00 c. -$39.00 d. -infinity e. None of the above

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