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Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and expirations of 6 months. a. What
Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and expirations of 6 months.
a. What will be the profit to an investor who buys the call for $5.0 in the following scenarios for stock prices in 6 months? (a) $40; (b) $45; (c) $50; (d) $55; (e) $60
b. What will be the profit to an investor who buys the put for $7.5 in the following scenarios for stock prices in 6 months? (a) $40; (b) $45; (c) $50; (d) $55; (e) $60.
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