Question: The current price of a stock is 97 You expect
The current price of a stock is $97. You expect the price of the stock to be in the range of $95 to $105 in the next period. The call option with an exercise price of $105 is $1.30; the put option with an exercise price of $95 is $1.00. Both options expire in the next period. Using options only, explain how you can earn a profit.
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