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It is currently Nov 1 and the stock price for ZZZ Corp is 113.25. The risk-free rates are 7.30% (Nov), 7.50% (Dec) and 7.62%(Jan). The

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It is currently Nov 1 and the stock price for ZZZ Corp is 113.25. The risk-free rates are 7.30% (Nov), 7.50\% (Dec) and 7.62\%(Jan). The expiration dates for the options are Nov 15 , Dec 20, and Jan 17. Assume the options are European and no dividends are paid. Question 2 (4 points) Using the options data from the spreadsheet Assignment-02.xlsx, form a COVERED CALL strategy with the stock and the Jan 110 CALL option. At maturity, determine: (Answers should be to two decimal places, NO dollar sign. You may Answer with INFINITY if appropriate) 1. The Maximum Profit: 2. The Maximum Loss: A A The Break Even Stock Price S*: A Question 3 (2 points) Use either "up" or "down" "neither"(without the quotes for your answers.. If the risk free rate increases, then the price of a call option will go A and if volatility increase, the price of a put option will go A

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