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assume the underlying asset is a stock worth $55 today. Also assume the following spot...

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Finance

assume the underlying asset is a stock worth $55 today. Also assume the following spot prices will be realized in the future S1=$62 and S2=47. Also assume that C(50,1)=$7 and P(50,2)=$3. r=15%. a. If you formed a long position in the underlying asset at t=0 and exited the position at t=2, what is your profit? b. If you formed a short position in the underlying asset at t=0 and exited the position at t=1, what is your profit?

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