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 buyplease 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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