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9. Two 6-month European put options on a stock are available with the following strike prices and premiums: Strike price Premium 35 5 45 4

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9. Two 6-month European put options on a stock are available with the following strike prices and premiums: Strike price Premium 35 5 45 4 The current stock price is 49, and the continuously compounded risk-free interest rate is 5%. You take advantage of the arbitrage opportunity by selling a 35-strike put and buying 45-strike puts so that the net cost is 0. After 6 months, the stock price is 32. Calculate your total profit after 6 months

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