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29 Given the following portfolio: Buy one call option on the stock XYZ with a strike price of $52.7 at a premium of $2. Sell
29
Given the following portfolio: Buy one call option on the stock XYZ with a strike price of $52.7 at a premium of $2. Sell two put options on the stock XYZ with a strike price of $57.5 at a premium of $1.5. Assume both option expire the same time. When the market price of the stock XYZ at expiration of all options is $54, the profit of the portfolio is $ Step by Step Solution
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