Recently You Bought a Call and a Put Option on a Stock

question 41

Multiple Choice

Recently you bought a call and a put option on a stock with a common exercise price of $75.The call premium was $5 and the put premium was $3.You will make money from this position if the stock price is:

• A)greater than $75, but less than $78.
• B)greater than $75, but less than $80.
• C)greater than $72, but less than $75.
• D)less than $67, or greater than $83.

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Definitions:

Lung Cancer

A disease characterized by the uncontrolled growth of abnormal cells in one or both lungs, often attributed to smoking tobacco and exposure to certain toxins.

Cancer Death

The loss of life due to cancer, a group of diseases characterized by the uncontrolled division of abnormal cells.

Coronary Artery Disease

A type of cardiovascular disease that involves the narrowing or blockage of the coronary arteries, primarily due to atherosclerosis, leading to reduced blood flow to the heart.

Coronary Heart Disease

A condition characterized by the narrowing of the coronary arteries, leading to decreased blood flow to the heart.