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Suppose you are offered two combinations of European one year options. First combination is long one put with strike 40 and long one call with
Suppose you are offered two combinations of European one year options. First combination is long one put with strike 40 and long one call with strike 50. Second combination is long one call with strike 49 and one put with strike 41. What combination do you think should be more valuable and how does it depend on current stock price and volatility
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