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Question 49 2 pts Use the following option quotes for the remaining questions on the test: Stock Price Strike Price Call Price Put Price Maturity
Question 49 2 pts Use the following option quotes for the remaining questions on the test: Stock Price Strike Price Call Price Put Price Maturity Jul 160 6.000 0.750 165.125 165.125 160 8.125 2.750 Aug Oct 165.125 160 11.125 4.500 165.125 165 165 165.125 165.125 165.125 Aug Oct 2.688 5.250 8.125 0.812 3.250 6.000 2.375 4.750 6.750 5.750 165 170 Jul 165.125 170 170 Aug Oct 7.500 ??? 165.125 The quotation date is July 6. The stock pays no dividends, and all the options are European. The option expirations are July 17, August 21, and October 16, with corresponding (annual) continuously-compounded risk-free rates of .0503.0535, and .0571, respectively. The associated number of days to expiration are 11, 46 and 102. Construct a bull spread using 20 each of the August 160 and 170 put contracts. Hold the position until expiration. What is the maximum profit for this trade at expiration? $9.500 O $4.500 O $1,700 O $5.250 O $24.125
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