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Suppose you are offered two combinations of European one year options. First combination is long one put with strike 100 and long one call with
Suppose you are offered two combinations of European one year options. First combination is long one put with strike 100 and long one call with strike 110. Second combination is long one call with strike 105 and one put with strike 105. What combination do you think should be more valuable and how does it depend on current stock price and volatility. SHOW STEPS, FORMULA, AND WORK
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