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Assume that you short one share of ABC for $ 50, and simultaneously buy a 60-strike European call option for $ 10 that expires in

Assume that you short one share of ABC for $ 50, and simultaneously buy a 60-strike European call option for $ 10 that expires in 2 years. Further, assume that the continuously compounded interest rate in 2%. If ABC share price decreases to 40 in 2 years. Calculate the pay-off and profit on this combined position.

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