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You buy a call option and sell a put option on bond X. The strike price of the call option is $90 and the strike
You buy a call option and sell a put option on bond X. The strike price of the call option is $90 and the strike price of the put option is $105. The call option premium is $5 and the put option premium is $2. Both options can be exercised only on their expiration date, which happens to be the same for the call and the put. If the price of bond X is $100 on the expiration date, what is your total payoff and then total profit from the options portfolio?
A. 15, 12
B. 5, 2
C. 5, 0
D. 15, 8
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