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1.(20pt) A Call option has an exercise price of $100; the current price of its support is $130; its expiry is one month from now.
1.(20pt) A Call option has an exercise price of $100; the current price of its support is $130; its expiry is one month from now. If the current call premium is $5, and its support price at the expiry is $120, then the call buyer will have a pay-off of ($ ) and a profit of ($ ); the call writer will have a pay-off of ($ ) and a profit of ($ ) at expiry 2.(20pt) How would you explain the equities of firms, in the context of 'put-call parity'? (answer briefly using keywords, please)
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