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2. You bought a put option with a strike of 100. The underlying can take values of 120 or 50 next period. The risk free

2. You bought a put option with a strike of 100. The underlying can take values of 120 or 50 next period. The risk free rate is 5%. What is the price of the put option? What is the price of a call option with the same strike and the same underlying? Would it be profitable to make a straddle in this case?

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