A trader buys a European call option and sells (short)

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A trader buys a European call option and sells (short)

 

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?

 

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