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1. A trader buys a call option with a strike price of $40 and a put option with a strike price of $40. Both options

1. A trader buys a call option with a strike price of $40 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $3. (1) Draw a diagram showing the variation of the traders profit with the asset price 2. Is the writer or the buyer of the option required margin? Or are both of them are required margin? 3. Explain why

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