Question: 4 . ( 1 pts ) A trader shorts one share of a stock index for 5 0 and buys a 6 0 - strike

4.(1 pts) A trader shorts one share of a stock index for 50 and buys a 60-strike European calloption on that stock that expires in two years for 10. Assume the annual effective risk-freeinterest rate is 3%. The stock index increases to 75 after 2 years. Calculate the profit on thecombined position, and determine an alternative name for this combined position.

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