Currently a stock is selling for $98. A call option at $100 is selling for $3 and
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Currently a stock is selling for $98. A call option at $100 is selling for $3 and a put option at $100 is selling for $4. A $100 discounted bond that matures at the same time the options expire is selling for $96. What would you do? Confirm that your strategy works for the following prices of the stock: $90, $95, $100, $105, and $110.
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