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1. Draw a diagram showing the variation of an investor's profit and loss with the terminal stock price for a portfolio consisting of (a) One

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1. Draw a diagram showing the variation of an investor's profit and loss with the terminal stock price for a portfolio consisting of (a) One share and a short position in one call option (b) Three shares and a short position in two call options (c) Two shares and a short position in three call options (d) Two shares and a short position in four call options In each case, assume that the call option has an exercise price equal to the current stock prico

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