Demonstrate the intrinsic values and moneyness ranges, Finance Basics

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Demonstrate the intrinsic values and moneyness ranges

Problem

An option holder has long positions in call and put options written on an underlying asset currently priced at €50. Numerically demonstrate the intrinsic values and moneyness ranges for the options using a range of plausible exercise (strike) prices and premiums.

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Finance Basics: Demonstrate the intrinsic values and moneyness ranges

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Finance Basics: Demonstrate the intrinsic values and moneyness ranges

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