What is the cost of holding the long call and long put and, Financial Management

What is the cost of holding the long call and long put and

Today’s price of Home Depot’s common stock is $50. A July 2018 call option on this Home Depot’s stock has an exercise price of $55 and costs $5. A July 2018 put option on this stock has an exercise price of $45 and costs $2.

A. What is the cost of holding the long call and long put and what is this position called?

B. At what stock price or prices will the position show a zero profit?

C. What is the worst loss that the position can incur?

D. What is the best outcome and for what range of stock prices does it occur?

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Financial Management: What is the cost of holding the long call and long put and

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Financial Management: What is the cost of holding the long call and long put and

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