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1.Given below the price movement of a company for a period of three months. Based on the price movements you are going to forecast what

1.Given below the price movement of a company for a period of three months. Based on the price movements you are going to forecast what could be the price at the end of the fourth month.

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Depending on your forecast you will form one option strategy for the company.

The available strike prices and their respective premiums are given below for the company.

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Find the strategy, option type, Long/short, the strike prices chosen for the strategy, the maximum profit potential and the max loss potential for the strategy

625.00 M x 600.00 575.00 550.00 525.00 500.00 475.00 >> 450.00 1 + 425.00 Call Premium Put Premium Strike 15 680 58 17 670 50 20 660 43 24 650 47 28 640 32 32 630 30 38 620 25 42 610 21 49 600 17 56 590 13 63 580 11

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