Exam #1

For the buyer of the ten puts, if the spot at exp = 93.93 those puts would be $4.07 in the money and thus worth $407. Profit for buying the puts = 10 ($407 - $2.22) = $1,850! At Indiff 2, the buyer of puts losses everything = $2,220. The writer of the calls has to buy the ten calls back with the calls being $4.07 in the money so each one is ... ................
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