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6 . Suppose you invest in the S&R index for $ 1 0 0 0 , buy a 9 5 0 - strike put, and

6. Suppose you invest in the S&R index for $1000, buy a 950-strike put, and sell a 1050-strike call. Draw a profit diagram for this position. What is the net option premium? If you wanted to construct a zero- cost collar keeping the put strike equal to $950, in what direction would you have to change the call strike?

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