Question: please answer this with work and the final answer. thanks You buy a 1-year put option and sell the corresponding call option. Both options are
please answer this with work and the final answer. thanks
You buy a 1-year put option and sell the corresponding call option. Both options are written on 1 share of IBM stock and both have an exercise price of $86. In addition, you also buy 1 share of IBM stock. What is the net payoff you receive from this 3-asset portfolio if at expiration the price of each share of IBM stock is $42 ? QUESTION 7 Consider two "corresponding" options, consisting of a call and a put with the exact same parameter values. For this pair, the call premium is $3.6. If the current price of the underlying asset is $26 and the present value of the exercise price is $26, what is the premium of the put option, P? Write the answer with one decimal; e.g., 3.2. Do NOT use the $ symbol in your answer; just write a numerical value
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