You have a long call and a long put at exercise prices of $40. Also, you...

You have a long call and a long put at exercise prices of $40. Also, you have a short call and a shot put at the exercise price of $45. If all options are properly priced, what is the cost of this combined position?

Can be positive, zero, or negative

Zero

Positive

Negative

Solutions

Expert Solution

The answer is positive

Explination:

if i have longcall and long put at excercise price of $40. And also i have a shot put at the excersice price of $45

If all the optiins are properly priced

Then the cost of the combined positiin will be Positive.

jeff jeffy answered 1 year ago

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