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6. Derivatives Advanced (optional) D. The FXI (iShares China Large Cap ETF) has a current spot price of $40. Assume the risk-free rate is 5%.
6. Derivatives Advanced (optional) D. The FXI (iShares China Large Cap ETF) has a current spot price of $40. Assume the risk-free rate is 5%. Over the next year, the ETF could either move up to $64 (+60%) or move down to $25 (-37.5%). What is the premium of a one year put with a strike of $45? E. Draw a single payoff diagram for an investor who buys the call and sells the put; both have strikes of $45. Add a second line incorporating the net premium. F. A person buys two calls and sells one put. At what price for FXI will they break even
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