Question: An investor buys a one-year floor of 35 on a stock. The price of the put option is 1.25. Let S be the price

An investor buys a one-year floor of 35 on a stock. The

An investor buys a one-year floor of 35 on a stock. The price of the put option is 1.25. Let S be the price of the stock at the end of the year. The continuously compounded risk-free interest rate is 5%. Determine the range of S for which the floor's profit is higher than the profit without the floor.

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