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You are given: Mary short-sells a stock that has a current price of 44 per share. Mary also shorts a 40-strike European put option and

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You are given: Mary short-sells a stock that has a current price of 44 per share. Mary also shorts a 40-strike European put option and buys a 50-strike European call option. Both options expire in one year. The prices of the options on this stock are: Strike Price 40 50 Call option 8.42 3.86 Put option 2.47 7.42 The annual interest rate is 5%. Calculate the maximum profit and maximum loss for the overall position at expiration and show the profit diagram

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