The payoff to the call option is $120 $110 $10. The call cost $7.45. The profit is
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The payoff to the call option is $120 $110 $10. The call cost $7.45. The profit is
$10 $7.45 $2.55 per share. The put will pay off zero—it expires worthless since the stock price exceeds the exercise price. The loss is the cost of the put, $8.10. LO.1
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Related Book For 
Essentials Of Investments
ISBN: 9780697789945
8th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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