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6. (15 pts) Please write the solution for this problem on paper Suppose a stock is trading at $4 in July. An options trader executes

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6. (15 pts) Please write the solution for this problem on paper Suppose a stock is trading at $4 in July. An options trader executes a spread by selling an August put with strike $30 for $50, buying an August put with strike $40 for $300, buying an August call with strike $40 for $300 and selling an August call with strike 50 for $50. Write the payoff function of the spread and provide the corresponding diagram. Write a paragraph discussing if the spread provides a limited/unlimited profit potential and possible corresponding risks

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