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A stock has a price of $73, which can later be $77 or $69 with equal probabilities. The options with exercise price $77 are valued
- A stock has a price of $73, which can later be $77 or $69 with equal probabilities. The options with exercise price $77 are valued at $1.53 for the call and $1.73 for the put.
- Calculate the gains/losses/returns for the stock.
- Calculate the gain/losses/returns for a covered call and protective put portfolio.
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Finance For Non-Finance People
Authors: Sandeep Goel
2nd Edition
0367185083, 9780367185084
