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Please solve using the chart below: Use the data in the chart. If you buy the stock for $115, how much would it cost to
Please solve using the chart below:
Use the data in the chart. If you buy the stock for $115, how much would it cost to create a strategy that will limit your loss on the stock to $5. (Ignore the price of options in calculating the loss).
Call Put
Strike Price Cost of Option Strike Price Cost of Option
110 7.50 110 2.50
100 16.50 100 0.50
90 26.00 90 0.25
a. 2.50
b. 7.50
c. 16.50
d. 50 cents
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