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A trader sells a call option with a strike price of $50 and a put option with a strike price of $35. The options have
- A trader sells a call option with a strike price of $50 and a put option with a strike price of $35. The options have the same maturity date. Suppose the premium for the call is $6 and for the put it is $5. On one chart, draw a diagram showing the variation in the trader's profit as a function of the stock price for the put, call and combined position.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
