A trader buys a stock and a put written on that stock, which has a...
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Finance
A trader buys a stock and a put written on that stock, which has a strike price of $60. The same investor sells a call (again written on the same stock) with the strike price of $80. Ignore the prices of call and put. a) Construct a table showing the payoffs (not net profits) for all possible price ranges. b) Draw a diagram showing the variation of the traders payoff (not net profits) with the asset price.
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