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2. Suppose that an European call option with price $5 has been written on a stock with a strike price $50 and an European put

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2. Suppose that an European call option with price $5 has been written on a stock with a strike price $50 and an European put options with price $7 has been written on the same stock with a strike price $30. The current stock price is $40. Suppose that an investor buys 100 shares, shorts 100 call options, and buys 100 put options. Draw a diagram illustrating how the investor's profit or loss varies with the stock price at expiration. How does your answer change if the investor buys 100 shares, shorts 200 call options, and buys 200 put options

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