You buy one Home Depot June 60 call contract and one June 60 put contract. The call premium is $5 and the put premium is $3. At expiration, you break even if the stock price is equal to
A) $52.
B) $60.
C) $68.
D) either $52 or $68.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

Call: $60 + ( $5) + $3 = $68 (break even); Put: $3 + $60 + ( $5) = $52 (break even); thus, if price increases above $68 or decreases below $52, a profit is realized.

You Buy One Home Depot June 60 Call Contract and One