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Business, 25.11.2021 09:40 omar2334

The common stock of the P. U.T. T. Corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next three months. You do not know whether it will go up or down, however. The current price of the stock is $110 per share, the price of a three-month call option with an exercise price of $110 is $9, and a put with the same expiration date and exercise price costs $7. Suppose that you use the options strategy in the previous question. How far would the price have to move down below for you to make a profit on your initial investment

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The common stock of the P. U.T. T. Corporation has been trading in a narrow price range for the past...
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