Question
A sneaky CFO buys a 6-month 90-strike call option on stock XYZ for $4.75 and writes a 6-month 80-strike call option on stock XYZ for
A sneaky CFO buys a 6-month 90-strike call option on stock XYZ for $4.75 and writes a 6-month 80-strike call option on stock XYZ for $6.35. The risk-free rate is 9% convertible semi-annually. If the spot price at expiration of stock XYZ is $85, calculate the sneaky CFOs prot.
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Banking And Finance
Authors: Brian Duignan
1st Edition
1615308946, 978-1615308941
