You Buy One Loews June 60 Call Contract and One

question 77

Multiple Choice

You buy one Loews June 60 call contract and one June 60 put contract. The call premium is $5 and the put premium is $3. At expiration, you break even if the stock price is equal to

• A) $52.
• B) $60.
• C) $68.
• D) either $52 or $68.
• E) None of the options are correct.

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Definitions:

Aromatic

Compounds that contain a planar ring of atoms that are stabilized by a delocalization of pi electrons according to Huckel's rule.

Antiaromatic

Antiaromatic compounds are cyclic, planar molecules that possess 4n π electrons (where n is an integer) and are destabilized due to their electronic structure, contradicting the stability seen in aromatic compounds.

Aromatic

Pertains to organic compounds that contain one or more planar rings of atoms with a degree of stability and special electronic structures.

Antiaromatic

Compounds that have conjugated pi electrons in a cyclic ring, destabilized by not following Huckel's rule for aromatic stability.