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Premiums for stock XYZ options with 1 year to expiration: Strike ....... Call ..... 9.12..... ***** 35 40 6.22..... 45 4.08 ..... Assume the
Premiums for stock XYZ options with 1 year to expiration: Strike ....... Call ..... 9.12..... ***** 35 40 6.22..... 45 4.08 ..... Assume the effective annual interest rate is 8% and the current spot price stock XYZ is 40. What is the range of spot price stock XYZ at maturity when a call option with strike price 45 has not only a higher profit than a call option with strike price 40 but also a lower profit than a call option with strike price 35? ******* ******* ******* ********* **********
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