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You are given the following: Price of the stock $ 18 Price of a three- month call at $ 20 2 Price of a three-
You are given the following: Price of the stock $ 18 Price of a three- month call at $ 20 2 Price of a three- month call at $ 15 5 a) What is the profit ( loss) at the expiration date of the options if the price of the stock is $ 14, $ 20, or $ 25 and if the investor buys the option with the $ 20 strike price and sells the other option? b) Compare the profit ( loss) from this strategy with shorting the stock at $ 18. c) What is the profit ( loss) at the expiration date of the options if the price of the stock is $ 14, $ 20, or $ 25 and if the investor buys the option with the $ 15 strike price and sells the other option? d) Compare the profit ( loss) from this strategy with buying the stock at $ 18
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