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1. Show the payoff pattern you would create if you sold a put and call at the same exercise price. Explain. Under what circumstances would
1. Show the payoff pattern you would create if you sold a put and call at the same exercise price. Explain. Under what circumstances would you expect someone to do this?
2.Show the payoff pattern you would create if you bought a put and a call where the exercise price of the price of the put is less than the exercise price of the call. Explain. Under what circumstances would you expect someone to do this?
3. Show the payoff pattern an investor would get if he/she bought a stock and bought a put against the stock. Explain.
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