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Emirates NBD is quoted at AED 8 0 , with an exercise price of AED 6 0 . The front - line trader of Morgan

Emirates NBD is quoted at AED 80, with an exercise price of AED 60. The front-line trader of
Morgan Stanley trader expects the market to be negative and hence he buys 4 put options with a
premium of AED 5 each. Find out the net payoff of the above trade. The spot price ranges from AED
20 to AED 120, with intervals of 10.

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