A Three-Month Call with a Strike Price of $25 Costs

question 3

Short Answer

A three-month call with a strike price of $25 costs $2. A three-month put with a strike price of $20 costs $3. A trader uses the options to create a strangle. For what two values of the stock price in three months does the trader break even with a profit of zero?
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Definitions:

Hallucinations

Sensory experiences that appear real to the individual but are created by the mind, without an external stimulus.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, heart attack, heart failure, and arrhythmias.

High Blood Pressure

A condition in which the force of the blood against the artery walls is too high, often leading to heart disease, stroke, and other health issues.

Pain Reduction

Techniques or treatments aimed at alleviating pain.