FoundationNumeric answer
You own stock at , buy the put for and sell the call for . What is your maximum loss per share at expiry?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
Reported in interviews at
More options: fundamentals and arbitrage questions
- You buy the $100 call for $6 and sell the $110 call for $4.Foundation
- You buy the $100 straddle for a combined premium of $12. What is the upper breakeven?Foundation
- You buy the $95 put for $2 and the $105 call for $3.Foundation
- You sell the $100 put for $5 and buy the $95 put for $2.50.Foundation
- What a call spread tells you, part 1 of 3Foundation
- You sell the $95 put and the $105 call, and buy the $90 put and the $110 call…Applied