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You buy a share of stock, write a 1-year call option with X = $105, and buy a 1-year put option with X = $105. Your net outla

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Payoff of the portfolio is $105 and the risk free rate of interest is 0.8645%.if sr> 105 The given portfolio is riskless with time t = $105 therefore risk free rate is &=[[105/104.1] -1] 100 = 0.86% Payo

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