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Consider the following options portfolio. You write a December maturity call option on RIM with exercise price 13. You write a December RIM put option

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Consider the following options portfolio. You write a December maturity call option on RIM with exercise price 13. You write a December RIM put option with exercise price 12. a. Not available in Connect. b. What will be the profit/loss on this position if RIM is selling at 11 on the option maturity date? What if RIM is selling at 12.5? Use the listing from Figure 18.1 to answer this question. (Round your answer to 2 decimal places. Omit the "exist" sign from your response.) If RIM sells at (Click to select) profit of loss If RIM sells at (Click to select) exist profit of loss c. Not available in Connect. d. What kind of "bet" is this investor making-that is, what must this investor believe about the RIM stock price in order to justify this position? (Round your answer to 2 decimal places. Omit the "exist" sign from your response.) The investor is betting that RIM stock price will (Click to select) from its current value of exist increase or but not below exist decrease

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