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Determine the maximum cost of the portfolio

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The current price of a non-dividend paying stock is 72.50. We are given the following information about one-year options on that stock:The price of a call option with a strike price of 70 is X. The price of a put option with a strike price of 75 is Y.A portfolio is constructed with 3 long call options with a strike price of 65 and two long put options with a strike price of 80. Determine the maximum cost of the portfolio (in terms of X and Y).

Reference no: EM132953567

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