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A trader buys an European call option with the strike price Kc and an European put option with the strike price Kp . The call
A trader buys an European call option with the strike price Kc and an European put
option with the strike price Kp The call options costs c and the put option costs p
Assume that Kc Kp and c p Both options have the same maturity.
Draw a diagram showing the traders payoff at the time of maturity.
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