You Sold a Call Option at Strike 105 for a Price

question 5

Multiple Choice

You sold a call option at strike 105 for a price of $3 and sold a put option at strike 95 for a price of $2,both options with the same maturity.In what range of stock prices at maturity will you make money or not lose (on your net payoff) ?

• A)90-110
• B)93-102
• C)95-105
• D)97-108

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Definitions:

Encryption

A method used to convert data into a coded format to prevent unauthorized access.

Original Message

The initial communication or content sent in a conversation or electronic transmission before any replies or forwards.

Intended Receiver

The designated or targeted recipient of a message or communication, as in telecommunications, broadcasting, or data transmission contexts.

Communications Control

The management and regulation of the sending and receiving of messages in telecommunication systems.