13. Use the spreadsheet from the Excel Application boxes on spreads and straddles (available at www.mhhe.com/bkm; link
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13. Use the spreadsheet from the Excel Application boxes on spreads and straddles (available at www.mhhe.com/bkm; link to Chapter 20 material) to answer these questions.
a. Plot the payoff and profit diagrams to a straddle position with an exercise (strike) price of $130. Assume the options are priced as they are in the Excel Application.
b. Plot the payoff and profit diagrams to a bullish spread position with exercise (strike) prices of $120 and $130. Assume the options are priced as they are in the Excel Application.
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