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1. What is the time value of the December 105 put? 2. What is the time value if the November 110 call? 3. Suppose you

1. What is the time value of the December 105 put?

2. What is the time value if the November 110 call?

3. Suppose you hold 100 shares of the underlying stock and plan to sell them in December. You are concerned about the price volatility. Which options do you think are useful in hedging your risk? List all that apply.

Call November Market price=4.40 Strike price=110

Put December Market price=1.30 Strike price=110

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