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You short an asset with price of $50. The same time, you purchase a 6 month call with an exercise price of $50 for $3.25.
You short an asset with price of $50. The same time, you purchase a 6 month call with an exercise price of $50 for $3.25. The effective annual interest rate is 6%. Determine your loss as of the expiration date of the option when the underlying asset price on that date is $52.
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