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Suppose the premium on a 9 1 - day 3 5 - strike XYZ Company stock call is $ 6 . 1 3 and the

Suppose the premium on a 91-day 35-strike XYZ Company stock call is $6.13 and the premium on a put with the same strike price is $0.44, and the premium on a 91-day 40-strike XYZ stock call is $2.78 and the premium on a put with the same strike price is $1.99, while the premium on a 91-day 45-strike XYZ stock call is $0.97 and the premium on a put with the same strike price is $5.08. In addition, the continuously compounded annual interest rate is 8%. You implement a strategy consisting of (1) the purchase of both a 45-strike XYZ call and a 35-strike XYZ put, and (2) the sale of both a 40-strike XYZ call and a 40-strike XYZ put. What is the profit or loss from this strategy, including both Part (1) and (2), at expiration (in 91 days) if the stock price is $75 at that time? (Reminder: Identify this strategy first before computing its combined profit/loss.)
  

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