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3.12 Suppose you invest in theS&Rindex for $1000, buy a 950-strike put, and sell a 1107- strike call. Draw a profit diagram for this position.

3.12 Suppose you invest in theS&Rindex for $1000, buy a 950-strike put, and sell a 1107- strike call. Draw a profit diagram for this position. How close is this to a zero-cost collar?

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