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You believe the price of ABC will rise and are therefore considering either (i) taking a long position in a $ 45 call by paying
You believe the price of ABC will rise and are therefore considering either (i) taking a long position in a $ 45 call by paying a premium of $3, or (ii) taking a short position in a $45 put for which you will receive a premium of $ 3. If the share price is $ 50 on the expiration date, which position makes you better off?
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