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Suppose you short-sell a stock (which pays no dividends) for $53 and buy a $55-strike call option for $8.20. Assuming the effective annual interest

Suppose you short-sell a stock (which pays no dividends) for $53 and buy a $55-strike call option for $8.20. Assuming the effective annual interest rate is 4%, what is the profit on your position if the stock is worth $34.98 when the option expires? $9.82 $20.14 $-8.41 $11.61 $12.67

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