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An investor purchases a call option with an exercise price of $66 for $3.60. The same investor sells a call on the same asset with
An investor purchases a call option with an exercise price of $66 for $3.60. The same investor sells a call on the same asset with an exercise price of $71 for $2.40. At expiration, 3 months later, the asset price is $68.75. All other things being equal and given a continuously compounded annual interest rate of 4.2%, what is the profit to the investor?
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