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Please don't forget the interest rate (year). You are given the following information about the Lockheed Martin Corporation: (i) The price of a 420-strike, 3-month
Please don't forget the interest rate (year).
You are given the following information about the Lockheed Martin Corporation: (i) The price of a 420-strike, 3-month call is $8.72. (ii) The price of a 360-strike, 3-month put is $17.33. (iii) The risk-free interest rate, compounded continuously, is 1%. Graph the profit diagram of a long 360-420 strangle that expires in 3 months. You are given the following information about the Lockheed Martin Corporation: (i) The price of a 420-strike, 3-month call is $8.72. (ii) The price of a 360-strike, 3-month put is $17.33. (iii) The risk-free interest rate, compounded continuously, is 1%. Graph the profit diagram of a long 360-420 strangle that expires in 3 monthsStep by Step Solution
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