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Both a call and a put currently are traded on stock XYZ; both have strike prices of $60 and expirations of 6 months. Required: What
Both a call and a put currently are traded on stock XYZ; both have strike prices of $60 and expirations of 6 months. Required: What will be the profit to an investor who buys the call for $5 in the following scenarios for stock prices in 6 months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60. What will be the profit to an investor who buys the put for $7 in the following scenarios for stock prices in 6 months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60
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