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You are an option trader for Goldman Sachs and consider the following investment strategy that involves options on the SP500: Buy a call option with
You are an option trader for Goldman Sachs and consider the following investment strategy that involves options on the SP500:
- Buy a call option with strike 50 for a premium of $4
- Sell 2 call options with a strike of 80 for a premium of $3 each
- Buy a call option with a strike of 120 for a premium of $2
At what price will you get the maximum profit?
0
80
75
110
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