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The current spot price of a stock is $100 per share, and the risk-free rate is 5%. The stock pays no dividends and costs nothing
The current spot price of a stock is $100 per share, and the risk-free rate is 5%. The stock pays no dividends and costs nothing to store. 4. An investor buys a one-vear European-style call option on the same stock. The strike is $105, and the premium is $5. In a year, the spot stock price is $90 per share. What is the payoff from financially settling the long call position? In a year, the spot stock price is $95 per share. What is the payoff from financially settling the long call position? In a year, the spot stock price is $100 per share. What is the payoff from financially settling the long call position? In a year, the spot stock price is $105 per share. What is the payoff from financially settling the long call position? In a year, the spot stock price is $110 per share. What is the payoff from financially settling the long call position
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