The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months, and you

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answerhappygod
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The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months, and you

Post by answerhappygod »

The common stock of the C.A.L.L. Corporation has been trading in
a narrow range around $50 per share for months, and you believe it
is going to stay in that range for the next three months. The price
of a three-month put option with an exercise price of $50 is $4,
and a call with the same expiration date and exercise price sells
for $7.
What is the cost of your strategy?
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