What combination of two options would give you the total position payoff shown in Figure 18-1? (You

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What combination of two options would give you the total position payoff shown in Figure 18-1? (You may assume that any sloped lines are at a 45-degree angle to the horizontal).

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a. Short call (E = 40), long call (E = 45)

b. Long put (E = 45), short call (E = 40)

c. Long put (E = 45), short put (E = 40)

d. Short put (E = 40), short call (E = 45)

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Corporate Finance Demystified By T Adair

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Question Posted: May 31, 2024 10:10 AM

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What combination of two options would give you the total position payoff shown in Figure 18-1? (You

Question:

20 20 15 50 0 -5 -10 -15 -20 5 * Options spread and combinations 35 50 Stock price at maturity (S-T) Figure 18-1 Total position payoff.

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Corporate Finance Demystified By T Adair

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