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A stock is currently trading at $273.98. You decide to buy a risk reversal which consists of selling a put with a strike of $270
A stock is currently trading at $273.98. You decide to buy a risk reversal which consists of selling a put with a strike of $270 and buying a call with a strike of $275. Assume the stock settles at a price of S at the expiry of the option. Complete the table of the payoff of the trade in the various scenarios. (Your answer can be entered as function of the variable S.)
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