The effective annual interest rate is 35 what is arnolds, Financial Management

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The effective annual interest rate is 35 what is arnolds

Arnold buys a one-year 125-strike European call for a premium of $16.86. He also sells a 100-strike call on the same underlying asset for a premium of $31.93. The spot price at experation is $110. The effective annual interest rate is 3.5%. What is Arnold's total profit at experation for the two options?

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Financial Management: The effective annual interest rate is 35 what is arnolds

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