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A 6-month $50-strike put option on certain stock has a premium of $2.82. The continuously compounded interest rate is 6%. What is the profit of

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A 6-month $50-strike put option on certain stock has a premium of $2.82. The continuously compounded interest rate is 6%. What is the profit of short put position if the stock price becomes $40 in 6 months? How to construct symmetric butterfly spread with S40-strike call, $43-strike call, and $50-strike call so that the spread contains 100 units of $43-strike call? What is the maximum and minimum payoff of this spread? XYZ mines copper, with a cost of $0.9/lb. The annual interest rate is 6%. The price of $0.95-strike put on copper is $0.0178. The price of $1-strike call is $0.0376. Compute the estimate profit for copper prices of $0.975 and $1.025 in 1 year if XYZ buys collars composing of the aforementioned put and call

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