Arnold buys a one-year 125-strike european call for a, Ask an Expert

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Arnold buys a one-year 125-strike European call for a premium of $16.86. He also sells a 100-strike call on the same underlying asset for a premium of $31.93. The spot price at experation is $110. The effective annual interest rate is 3.5%. What is Arnold's total profit at experation for the two options?

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Financial Management, Finance

Category:- Financial Management
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