8. Option combinations (S21-2) Suppose you buy a one-year European call option on Wombat shares with an
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8. Option combinations (S21-2) Suppose you buy a one-year European call option on Wombat shares with an exercise price of $100 and sell a one-year European put option with the same exercise price. The current share price is $100, and the interest rate is 10%.
a. Draw a payoff diagram showing the payoffs from your investments.
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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