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A portfolio is made of the following: a long position on a bond that pays $150 in 6-months; a long position on a 6-month European

A portfolio is made of the following: a long position on a bond that pays $150 in 6-months; a long position on a 6-month European straddle on IBM stock with strike $100. The IBM spot price is $100. An at-the-money 6-month European call on IBM has a premium today of $10. The risk-free rate is 10%. Express the range of values of IBM stock price in 6 months for which the Portfolio has a positive profit. Which one of the following has positive profit? Select one: a. None of these b. S1111.69 A portfolio is made of the following: a long position on a bond that pays $150 in 6-months; a long position on a 6-month European straddle on IBM stock with strike $100. The IBM spot price is $100. An at-the-money 6-month European call on IBM has a premium today of $10. The risk-free rate is 10%. Express the range of values of IBM stock price in 6 months for which the Portfolio has a positive profit. Which one of the following has positive profit? Select one: a. None of these b. S1111.69

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