Question: Consider: ( a ) Stock trades for $ 1 0 0 ; ( b ) Calls with exercise prices of $ 1 1 0 trade
Consider:
a Stock trades for $;
b Calls with exercise prices of $ trade at prices of $;
c Puts with exercise prices of $ trade at prices of $
If a person buys a $ call and a $ put, what is the magnitude of her maximum loss? Please answer correctly up to two decimal places.
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