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Question: Call: strike price $30, term three months, price $3; Put: strike price $30, term three months, price $4. Stock price is $29. You sell the stock short.

a. What is the maximum possible profit on the position?

b. What is the maximum possible loss on the position?

c. What range of stock prices generates a profit?

d. What advantage does this position offer?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92790946

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