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Answer. A 4) A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock

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Answer. A 4) A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock with a strike price of $30 costs $4. Suppose that a trader buys two call options and one put option. The breakeven stock price below which the trader makes a profit is A) $25 B) $28 C) $26 D) $20 and 10 years to maturity 2. Consider a bond selling at par ($1000) with a coupon rate of 6% what is the price of this bond if the required yield is 15%

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