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Business, 03.01.2020 17:31 amazinga

The common stock of the

c. a.l. l. corporation has been trading in a narrow range around $140 per share for months, and you believe it is going to stay in that range for the next 6 months. the price of a 6-month put option with an exercise price of $140 is $13.06.

a. if the risk-free interest rate is 10% per year, what must be the price of a 6-month call option on

c. a.l. l. stock at an exercise price of $140 if it is at the money? (the stock pays no dividends.)

b. what would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement?

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The common stock of the

c. a.l. l. corporation has been trading in a narrow range around...
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