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Unformatted text preview: The annual effective risk free interest rate is 5%. You enter into a Floor on Sajali Steel. Calculate the payoff and profit is the Spot Price in one year is 70. 3. You enter into a Bull Spread by buying a buying a 40 strike one year call at a price of 10 and selling a 60 strike one year call at a price of 2. The annual effective risk free interest rate is 5%. Calculate the maximum profit and maximum loss that is possible from this Bull Spread at the end of one year....
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 Spring '08
 Staff
 Math, Derivative, Forward contract, annual effective risk, Sajali Steel Company, Sajali Steel

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