Recently you bought a call and a put option on a stock with a common exercise price of $75.The call premium was $5 and the put premium was $3.You will make money from this position if the stock price is:
A)Greater than $75, but less than $78
B)Greater than $75, but less than $80
C)Greater than $72, but less than $75
D)Less than $67, or greater than $83

Question

Quizplus · Accepted Answer

The total premium paid is $8 ($5 for the call and $3 for the put). You profit if the stock price is below $67 (exercise put) or above $83 (exercise call).

Recently You Bought a Call and a Put Option on a Stock