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
Posted: Tue Nov 23, 2021 8:55 am
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?
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?