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Compute the break-even terminal stock price of the following strategy. That is, find the terminal stock price that will make the strategy prot and loss
Compute the break-even terminal stock price of the following strategy. That is, find the terminal stock price that will make the strategy prot and loss to be $0. Received $4 for taking a short position in a European put option with strike price of $70 and paid $10 to purchase a European put option with strike price of $110. Two options have same underlying security and same maturity.
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