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Answer:
Since both call and put premiums have been boughtm they are foregone costs. Hence total premium = 0.02 + 0.01 =0.03
BEPcall = strike price + premium paid;
= 1.15 + 0.03 = 1.18
BEPput = strike price - premium paid.
1.05 - 0,03 = 1.02
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