Calculate both the payoff and profit for each option

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Reference no: EM131980526

A call option on Regalo stock has a strike price of $40 and a current price of $4.00. A put option on Regalo stock has a strike price of $40 and a current price of $3.50. Calculate both the payoff and profit for each option, to both the long and short positions, based on stock prices at expiration of $37 and $44.

Reference no: EM131980526

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