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)both $52 and $68.
E)None of the options

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