Question: Question #3 (10 points) A trader buys a call option with a strike price of $54 and a put option with a strike price of
Question #3 (10 points) A trader buys a call option with a strike price of $54 and a put option with a strike price of $49. Both options have the same maturity. The call costs $3 and the put costs $4. Determine the trader's profit or loss for the following asset price S: (a) S 49. (b) 49
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