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1. You are given the following prices for the 2020-01-17 options on JPM stock: E = 105 call 9.43 E = 115 call 8.08 E

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1. You are given the following prices for the 2020-01-17 options on JPM stock: E = 105 call 9.43 E = 115 call 8.08 E = 125 put 7.50 E = 135 put 15.55 Spot (current) price on 2019-10-17 is S6 = 120, interest rate r = 0. Investigate the following spread: long 105 call, short 115 call, short 125 put, long 135 put. 1. Plot the profit diagram of the spread. 2. What is is wrong with the diagram? (Give a 1-2 sentence explanation citing appro- priate mathematical notions) 3. Assuming only one price given to you had a mistake, identify that price by showing it contradicts our theoretical results (see back for formulas)

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