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Help me please e) How does your answer to b) change if you include a stock borrow fee of 0.25% on the $100 of XYZ
Help me please
e) How does your answer to b) change if you include a stock borrow fee of 0.25% on the $100 of XYZ stock you borrowed? (Assume the stock borrow fee is paid at the end of the 3 month period,) Q3) Construct profit and payoff diagrams for the following: a) Long a 105 strike straddle. b) Short a 95 strike straddle. c) Combine a) and b) in a single portfolio. e) How does your answer to b) change if you include a stock borrow fee of 0.25% on the $100 of XYZ stock you borrowed? (Assume the stock borrow fee is paid at the end of the 3 month period,) Q3) Construct profit and payoff diagrams for the following: a) Long a 105 strike straddle. b) Short a 95 strike straddle. c) Combine a) and b) in a single portfolioStep by Step Solution
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