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Three traders compare the potential payoffs of their positions. Trader A has a call option...

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Finance

Three traders compare the potential payoffs of their positions. Trader A has a call option with a strike price of $25, Trader B has a put with a strike price of $27 and trader C owns a zero-coupon bond with a FV of $1. Each trader's position matures at the same time. Which of the following statements is correct regarding the trader's payoffs?

a) There is one potential stock price at which all trades make the same payoff.

b) Trader C's payoff is always lower than one of the other Traders.

c) Trader c's payoff is always higher than one of the other Traders.

d) There is not enough information to support any of these claims.

e) More than one of these answers is correct.

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