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Q1: Thuan buys a 9 month straddle struck at K = 32.00. The option prices...

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Finance

Q1: Thuan buys a 9 month straddle struck at K = 32.00. The option prices are: PK = 14.40 and CK = 15.84. The (cc) interest rate is r = 5.25%. a) Graph the payoff diagram for this portfolio. Label all the key points (max, min, breakeven). b) Graph the profit diagram for this portfolio. Label all the key points (max, min, breakeven)

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