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Question 19 The current price of a share is 240p. An analyst has estimated the following for three months time Share price (p) 200 220

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Question 19 The current price of a share is 240p. An analyst has estimated the following for three months time Share price (p) 200 220 240 260 280 Probability 0.10 0.25 0.30 0.25 0.10 Three-month put and call options with an exercise price of 220p can be purchased. What is the expected profit in three months time of having bought one call and one put option for a combined total premium cost of 18p? 8.4p OC 2p D.nl

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