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Consider the following option portfolio: You write a January 2012 expiration call option on IBM with exercise price $172, and the price of the call
Consider the following option portfolio: You write a January 2012 expiration call option on IBM with exercise price $172, and the price of the call option is $8.93. You also write a January expiration IBM put option with exercise price $167, the price of the put option is $10.85 Instructions: for parts a, b, and c, enter your answer as a decimal rounded to the nearest cent. a. What will be the profitloss on this position if IBM is selling at $159 on the option expiration date? $ b. What will be the profit/loss on this position if IBM is selling at $180 on the option expiration date? S
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