Question: PROBLEM 4. 5 points. The financial wizard Jane Goldentoch wants to sell you a portfolio of European options. The portfolio contains a long position in

PROBLEM 4. 5 points. The financial wizard Jane Goldentoch wants to

PROBLEM 4. 5 points. The financial wizard Jane Goldentoch wants to sell you a portfolio of European options. The portfolio contains a long position in a 20-strike call, a long position in a 30-strike put, a short position in a 30-strike call, and a short position in a 20-strike put. The expiration date of the options are six months from now. The risk free interest rate is 5% per an . What is the fair price for this portfolio? Why? PROBLEM 4. 5 points. The financial wizard Jane Goldentoch wants to sell you a portfolio of European options. The portfolio contains a long position in a 20-strike call, a long position in a 30-strike put, a short position in a 30-strike call, and a short position in a 20-strike put. The expiration date of the options are six months from now. The risk free interest rate is 5% per an . What is the fair price for this portfolio? Why

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