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Calculate the spot price of the asset at the end of one year

    Assignment Instructions

    Assignment ID: FG132462478

    The price of an asset is currently 100. The profit for a bull spread created by a purchased European call on the asset with strike price 90 and a written European call on the asset with strike price 105 both expiring at the end of one year is 0. The premium for the purchased call is 13.54, and the premium for the written call is 4.61. The continuously compounded risk-free rate of interest is 5%.
    Question 1: Calculate the spot price of the asset at the end of one year.

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