Purchase-effective interest rate

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Suppose that you purchase for 7 dollars each three call options with a strike price of 105 dollars, and purchase for 8 dollars each two put options with a strike price of 110 dollars. If the effective interest rate is 0, options all have the same expiration date, and if the stock price on the exercise date is 130 dollars, what is your profit?

Reference no: EM13777492

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