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1. Plots A, B, C and D describe different payoffs for put and call options at expiry. 10 20 10 10 20 30 10 underlying

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1. Plots A, B, C and D describe different payoffs for put and call options at expiry. 10 20 10 10 20 30 10 underlying price ) underlying price (S) 10 10 20 30 10 20 underlying price ($) underlying price (S) Select the plot (A, B, C or D) which best describes the payoff at expiry for: (a) a long position for a put; (b) a writer of a call: (c) a short position for a put (d) best choice for a holder if the underlying's price is expected to rise substantially (e) payoff is possibly negative, but it is limited; (f) l argest loss in a very bullish market; (g) the most profitable choice in a very bearish market; (h) the payoff is unlimited (two choices)

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