Investor A sells a put option for $6.60, and investor B sells a call option for...

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Question

Answer 1

Answer #1

Given:- Strike price of both options $45 period (term) = 15 months Exercise date stock price = $50 Continuoully compounded in

a) profit of investor A on exercise date =$ 6.938382

b) profit of investor B on exercise date = $ 4.2406633

Answer 2

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