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QUESTION 6 10 points Save Answer You buy a 1-year put option and sell the corresponding call option. Both options are written

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Answer #1

Put option is the right to sell a specified asset at a specified price on a future date

Call option is the right to buy a specified asset at a specified price on a future date

Since market price on maturity is lower than strike price, call option will not be exercised and put option will be exercised

Net payoff = 98-45 = $53

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