Question: Consider: ( a ) Stock trades for $ 1 0 0 ; ( b ) Calls with exercise prices of $ 1 1 0 trade

Consider:
(a) Stock trades for $100;
(b) Calls with exercise prices of $110 trade at prices of $7.74;
(c) Puts with exercise prices of $90 trade at prices of $4.52.
If a person buys a $110 call and a $90 put, what is the magnitude of her maximum loss? Please answer correctly up to two decimal places.

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