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(15 points) OY 9. An undiagonal spread could be constructed by shorting a call with stnke price K: exercise date T2 and buying a call

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(15 points) OY 9. An "un"diagonal spread could be constructed by shorting a call with stnke price K: exercise date T2 and buying a call with strike price K, and exercise date Tu Assume T2 > T. coi F (i) Draw a profit diagram for the case where K. > K Is the initial cash flow to this strategy positive or negative Describe qualita how you can tell

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