This attempt took 15 minutes. Partial Question 1 Consider the following short box spread. All prices are in USD. Exercise December December Price Call Price Put Price 80 5.88 4.75 85 3.13 7.75 Please round the number solution to 2 decimal places. Format: 1234.68-ST or -60.00+ST Payoff at t=6 months Transaction (NOW) Payoff (Now t3D0) ST < 80 80 s ST< 85 ST 285

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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This attempt took 15 minutes.
Partial
Question 1
Consider the following short box spread. All prices are in USD.
Exercise
December
December
Price
Call Price
Put Price
80
5.88
4.75
85
3.13
7.75
Please round the number solution to 2 decimal places.
Format: 1234.68-ST or -60.00+ST
Payoff at t=6 months
Transaction
Payoff (Now t=0)
(NOW)
ST < 80
80 s ST< 85
ST 285
Transcribed Image Text:This attempt took 15 minutes. Partial Question 1 Consider the following short box spread. All prices are in USD. Exercise December December Price Call Price Put Price 80 5.88 4.75 85 3.13 7.75 Please round the number solution to 2 decimal places. Format: 1234.68-ST or -60.00+ST Payoff at t=6 months Transaction Payoff (Now t=0) (NOW) ST < 80 80 s ST< 85 ST 285
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