Question: Consider a call option on an asset with an exercise price of $100, a put option on that same asset with an exercise price of

Consider a call option on an asset with an exercise price of $100, a put option on that same asset with an exercise price of $100, both expiring at the same time. Assume that at the expiration, the current market price of the asset is each of the following two values. Explain what happens from the perspective of the long position for each of the two options:

a. $105

b. $95

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