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task. Background: The market is efficient and provides a put-call parity. All options are European, the strike price for call and put options is the

task. Background: The market is efficient and provides a put-call parity. All options are European, the strike price for call and put options is the same, they are based on the same stocks. The expiry date of options is 1 year. Data on options are presented in Table 1. Assignment: Build charts (diagrams) illustrating the winnings and losses of the following strategies:

1. Buying an option call.

2. Selling the Option Call.

3. Buying an option put.

4. Selling put option.

Table 1.

Share price

Risk-free interest rate, %

Execution Price,

The cost of the call.

The cost of put

67

11

67

8,41

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