You Are Long Both a Put Option and a Call

question 33

Essay

You are long both a put option and a call option on Rockwood stock with the same expiration date.The exercise price of the call option is $40 and the exercise price of the put option is $30.Graph the payoff of the combination of options at expiration.

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Definitions:

New Table

In database management systems, this refers to the creation of a fresh table structure designed to hold data, defined by columns and rows.

Referential Integrity

A principle in databases that ensures relationships between tables remain consistent, where keys referenced across tables must exist.

Primary Key

The unique identifier for each record in a database table, ensuring no two rows have the same key.

Validation Rules

Criteria or checks set in data input fields to ensure that the data entered follows certain standards or requirements.