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You have been tracking a stock and have decided that it would be profitable to use an option strategy to speculate on the stock. You decide to trade the following strategy:

a. Sell one $5 strike call for $6.00

b. Buy two $85 strike calls for $2.00 each

What is the maximum gain from the strategy?

What is the maximum loss from this strategy?

What is the breakeven from this strategy?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92841299

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