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4. The current spot price of an ounce of gold is $1,875. At an exercise price of $2,000 and with a maturity of three months,
4. The current spot price of an ounce of gold is $1,875. At an exercise price of $2,000 and with a maturity of three months, you simultaneously buy a call and a put option on an ounce of gold. According to analysts' reports the gold price is expected either to fall to $1,650 or rise to $2,350 three months later. Assuming a risk-free rate of 2%, calculate the call price and put price. (30 pts)
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