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An investor shorts one share of a nondividend paying stock for 100 and buys a 110-strike European call on the stock that expires in one

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An investor shorts one share of a nondividend paying stock for 100 and buys a 110-strike European call on the stock that expires in one year. The price of the call option is 10. The continuously compounded risk-free interest rate is 5%. Calculate the maximum possible loss for the investor. A. Cannot be determined B. 15.39 C. 90.00 D. 0 E. 94.61

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