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Today, you are buying a one-year call on one share of Webster United stock with a strike price of $40 per share and a one-year
Today, you are buying a one-year call on one share of Webster United stock with a strike price of $40 per share and a one-year risk-free asset that pays 5 percent interest. The cost of the call is $2 per share and the amount invested in the risk-free asset is $38.10. What is your maximum potential loss per share on these investments at the end of one year? $1.85 loss $.10 loss $0 $.42 loss $1.54 loss
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