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A trader writes (i.e. sells) two calls with strike = $41 costing $5 each. He simultaneously goes long on 3 puts with strike = $45
A trader writes (i.e. sells) two calls with strike = $41 costing $5 each. He simultaneously goes long on 3 puts with strike = $45 and costing $7 each. Both expire in 6 months. If the spot price at expiration is $ 43.50 and the interest rate is 6% per annum (continuous), what is the trader's profit or loss?
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