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a. Draw payoff and profit diagrams for the following options: 1) 35-strike put with a premium of $1.53. 2) 40-strike put with a premium of

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a. Draw payoff and profit diagrams for the following options: 1) 35-strike put with a premium of $1.53. 2) 40-strike put with a premium of $3.26. 3) 45-strike put with a premium of $5.75. b. Consider your payoff diagram with all three options graphed together. Intuitively, why should the option premium increase with the strike price

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