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1. Your options trading strategy involves buying a European put with a strike price of 10 for 10.50 and a European call with a strike
1. Your options trading strategy involves buying a European put with a strike price of 10 for 10.50 and a European call with a strike price of b25 for 10.75 and selling a European put with a strike price of b15 for bl.25 and a European call with a strike price of 120 for b1.50. The expiry date and the underlying asset is identical for each of the four options. Draw the profit diagram for this strategy and indicate the maximum profit/loss levels and break-even price levels. Show the details of your intermediate calculations
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