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A stock is trading at 5120 currently You believe there is a 20% chance the price of the stock will increase by 10% over the

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A stock is trading at 5120 currently You believe there is a 20% chance the price of the stock will increase by 10% over the next 3 months You belleve there is a 30% chance the stock will drop by 5% You think there is only a 50% chance of a major drop in the price of 30% At the money 3-month calls are available at a cost of $450 per contract (equaling 100 shares). What is the expected dollar profit for a writer of a naked call at the end of 3 months? O $ 210 5660 O $550 $-300 $450

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