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Stock StrangleCo is currently trading at $40. You plan to build a strangle with strike prices of $38 and $42 respectively. The risk-free rate is

Stock StrangleCo is currently trading at $40. You plan to build a strangle with strike prices of $38 and $42 respectively. The risk-free rate is 5% per annum (continuously compounding), the volatility of the stocks return is 25% per annum, and the time to maturity is four months. What is the cost for building this strangle?

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