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A trader buys a European call option and sells short a European put option The options have the same underlying asset strike price and maturity Describe the trader’s position

A trader buys a European call option and sells (short) a European put option. The options have the same underlying asset, strike price, and maturity. Describe the trader’s position.            The trader monitors the market continuously and finds at one point that the call is significantly overpriced relative to fair value.
What strategy is available for the trader to lock in a profit at current prices?

Sep 01 2020 View more View Less

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