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Assume the current stock price is $50, a call option on that stock has a premium of $5, a put option on that stock has
Assume the current stock price is $50, a call option on that stock has a premium of $5, a put option on that stock has a premium of $3, the strike price on both options is $50, and you presently hold no position in the three. Suppose you take one of the following positions and the stock price drops to $47 per share at option expiry. Which position would earn the largest P/L?
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