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What will be the profit in each scenario to an investor

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Both call and put currently are traded on stock XYZ: both have strike prices of $50 and maturities of six months.

Problem a) Will it be the profit to an investor who buys the call for $4 in the following scenarios for stock prices in six months? (i) $40;(ii) $45;(iii) $50;(iv) $55;(v) $60.

Problem b) What will be the profit in each scenario to an investor who buys the put for $6?

Reference no: EM133004361

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