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Suppose today is December 1 5 , 2 0 1 0 . You decide to buy a 2 : 1 January Ratio Call Spread on
Suppose today is December You decide to buy a : January Ratio Call Spread on Google stock. Specifically, you buy one call on Google with strike $ and premium $ and you write two calls on Google with strike $ and premium $All options are European and mature on January a What is the net premium that you collectpay in December?b What are the cash flows of this strategy in January?
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