Question: PLEASE NOTE: I POSTED THIS QUESTION BEFORE BUT ONE EXPERT SIMPLY COPIED THE ANSWER TO ANOTHER QUESTION THAT WAS USING THE SAME INFORMATION. WHAT I'M

PLEASE NOTE: I POSTED THIS QUESTION BEFORE BUT ONE EXPERT SIMPLY COPIED THE ANSWER TO ANOTHER QUESTION THAT WAS USING THE SAME INFORMATION.

WHAT I'M LOOKING FOR ARE 2 GRAPHS.

An investor is provided with the following information on American put and call options on a share of a company listed on the London Stock Exchange:

  • Call price (c0) = 33p
  • Put price (p0) = 49p
  • Exercise price (X) = 480p
  • Today: 11 June 2019
  • Expiry date: 20 December 2019
  • Current stock price (S0) = 458p
  • Risk-free interest rate (r) = 2.4%
  • The company pays no dividends.

Draw a graph showing the prices at expiry of a fiduciary call and another one showing a protective put, including all of their components, in relation to the price of the stock in a range between 350p and 600p.

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