Question: 11. A trader buys a call option with a strike price of $55 and a put option with a strike price of $52. Both options
11. A trader buys a call option with a strike price of $55 and a put option with a strike price of $52. Both options have the same maturity. The call costs $4 and the put costs $5. Draw a diagram showing the variation of the trader's profit with the asset price. 12. . Discuss the advantages and disadvantages of using options versus forward contracts to hedge the automotive corporation's exposure to aluminum prices
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