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Jimmy shorts one share of the O&P index for the current price of 250, and, at the same time, Jimmy buys a 2 year call on the O&P with strike 270 for 50. The interest rate is 4%.The price of the index at expiration is 280. You may assume that there are no dividends. Determine Jimmy's profit ( loss ) on the combined position. What is the name for such a combined position?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92775933

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