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34) Consider the following payoff diagram of a specific options portfolio strategy, and the below options strategies. For each option, its strike price (X) is
34) Consider the following payoff diagram of a specific options portfolio strategy, and the below options strategies. For each option, its strike price (X) is provided in parentheses. Which one of the below specified options portfolios would result in this payoff diagram? Payoff 70 75 80 85 105 110 115 120 90 95 100 Stock Price (ST) a) Buy 1 call (X=80) + sell 1 call (X=90) + sell 1 call (X=100) + buy 1 call(X=110) b) Sell 1 call (X=80) + buy 1 call (X=90) + buy 1 call (X=100) + sell 1 call(X=110) c) Buy 1 call (X=80) + sell 1 put (X=90) + sell 1 put (X=100) + buy 1 call(X=110) d) Buy 1 call (X=80) + buy 1 put (X=90) + buy 1 put (X=100) + buy 1 call(X=110)
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