alleryStart learning →A trader buys a call at Rs 3 and a put at Rs 2, both with strike Rs 50. What are the two break-even prices at expiry?
ARs 47 and Rs 53
BRs 45 and Rs 55
CRs 48 and Rs 52
DRs 50 and Rs 55
Answer & Solution
Correct answer: B. Rs 45 and Rs 55
Total cost is Rs 5, so profit needs the stock below 50 minus 5 = 45 or above 50 plus 5 = 55.
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