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At an annual continuously compounded interest rate of 5%, the 1-year $10-strike put premium for a stock is $1.0214. An investor shorts a 1-year $10-strike

At an annual continuously compounded interest rate of 5%, the 1-year $10-strike put premium for a stock is $1.0214. An investor shorts a 1-year $10-strike straddle on the stock. Calculate the investors maximum profit in 1 year.

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-1.25

Cannot be determined based on the given information

1.25

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