(A) Based on the following information about stock ABC form a long condor spread.
Stock price $
Annualised Volatility 20%
Maturity 35 days
Risk free rate 1%.
Use Black scholes option pricing model for determining option premium.
Strike prices are available at $ 5 interval between $75-$120.
(B) Why is long condor is formulated ?
( C) Show profit and loss chart of the spread formulated in (a) above with the expected spot price range of $ 70-130.
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