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a. Assume that you buy a call with an exercise price of $100 and at a cost of $9. At the same time, you sell
a. Assume that you buy a call with an exercise price of $100 and at a cost of $9. At the same time, you sell a call with an exercise price of $110 and a cost of $5. The two calls have the same underlying stock and time to maturity. What is this position called? (2 points) b. Provide a table of profits from this position and graph this position. (5 points) c. At what stock price(s) the net profit will be zero? (2 points) d. What is the worst loss that the position can incur? (1 points)
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