Investor B sold a put option and bought a call option when the stock price is $30. The strike price for both options is $35. Premiums on call and put is $3.55 and $4.05 respectively. At the time of maturity, the stock is trading at $48. How much B earned as profit? a) $5.40 b) $17.50 c) $18.50 d) $13.50
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The answer is $13.50.
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