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:

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Older People

Individuals who are generally considered to be in the later stages of the human life span, often defined as 65 years and older.

Memory Loss

The inability to remember information or experiences, ranging from temporary forgetfulness to long-term memory impairments, such as amnesia.

Permanent Brain Damage

Irreversible injury to the brain tissue that affects cognitive, physical, or emotional functioning, often resulting from trauma, lack of oxygen, or neurological illness.