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[9 marks) Assume that the effective 6-month interest rate is 2%. and use these premiums for S&R European options with 6 months to expiration. Strike

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[9 marks) Assume that the effective 6-month interest rate is 2%. and use these premiums for S&R European options with 6 months to expiration. Strike Call Put 950 $120.405 $51.777 1000 93.809 74.201 [6 marks Consider the same premiums and interest rate as in Problem 7. Draw the profit diagram of a 1000-strike written straddle. For which values of the spot price will the profit exceed $30

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